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  #1  
Old 04-09-2010, 02:01 AM
Tombone Tombone is offline
 
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Default Cost figures for a Morton Building/residene

What cost figures would one use for a "Morton Building" being used as a residence? This is becoming more popular. People are building say 60' X 100' metal buildings and using half as home ( very nice inside) and the other half as garage, shop etc. Would one use mfg cost figures from Marshall & Swift or normal stick built? Any ideas?-THanks
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Old 04-09-2010, 08:42 AM
Ted Martin Ted Martin is offline
 
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Detailed method, use the segregated costs from the M&S. Quick and dirty method, use the MFG costs.
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Old 04-09-2010, 09:03 AM
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CANative CANative is offline
 
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http://www.mortonbuildings.com/cabin.aspx

Contact Morton and interview a sales person and one of their engineeers about costs, etc.
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Old 04-09-2010, 09:46 AM
Tombone Tombone is offline
 
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Thanks-I am actually looking at a review and the appraiser used this cost approach for value. His FMV is about $12,000 greater than the top sale. I understamd using the cost approach for new construction but not for a Morton building in the country on acreage. All of his sales are Morton buildings also on similar acreage.---
  #5  
Old 04-09-2010, 09:53 AM
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Mike Kennedy Mike Kennedy is offline
 
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Quote:
Originally Posted by Tombone View Post
Thanks-I am actually looking at a review and the appraiser used this cost approach for value. His FMV is about $12,000 greater than the top sale. I understamd using the cost approach for new construction but not for a Morton building in the country on acreage. All of his sales are Morton buildings also on similar acreage.---
Purchase Appraisal with a contract supplied to the Appraiser?
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Old 04-09-2010, 10:08 AM
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Webbed Feet Webbed Feet is offline
 
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Default When is FMV used?

Quote:
Originally Posted by Tombone View Post
Thanks-I am actually looking at a review and the appraiser used this cost approach for value. His FMV is about $12,000 greater than the top sale. I understamd using the cost approach for new construction but not for a Morton building in the country on acreage. All of his sales are Morton buildings also on similar acreage.---
His what? So the intended use involved the IRS huh?
  #7  
Old 04-09-2010, 02:29 PM
Ted Martin Ted Martin is offline
 
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Sounds like you have identified the functional depreciation amount for this type of property which should have been deducted from the cost approach. I really hate these types of homes. They are always a pain and the owner/builder always think they are pure gold. If they were so great then you would see subdivisions of them. They meet the needs a a particular sub group of homeowners and are discounted by the rest.
  #8  
Old 04-10-2010, 06:45 PM
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Terrel L. Shields Terrel L. Shields is online now
 
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Quote:
His FMV is about $12,000 greater than the top sale. I understamd using the cost approach for new construction but not for a Morton building in the country on acreage. All of his sales are Morton buildings also on similar acreage.---
It would not be unusual for the market value to be higher than the comps even if all Morton Buildings - amazing accomplishment to find multiple Morton buildings or Butler buildings, whatever. It would depend upon how 'fancy' they are. I know one that cost $250,000 - about 40' x 80'. Certainly it would be higher than a similar sized one that had less amenities, or smaller living area inside the shop...or the shop is uninsulated.
So are you comparing oranges with oranges? or oranges with pears? Also age differences....and most importantly, if rural acreages, the underlying land value.

If the land value is near or exceeds the value of the buildings, a cost approach might be the most applicable method of valuing such a building, using land comps plus estimating the building contribution.

Likewise such structures normally do exhibit limited market appeal and thus an economic (external) obsolescence might be considered; or, if you prefer to consider the design a "flaw" then you can treat it as Functional obsolescence - an inadequate house or a superadequate barn...whatever.
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Old 04-10-2010, 11:24 PM
Restrain Restrain is offline
 
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Morton buildings generally cost far more than the typical metalframe that are used for such combinations. They're usually heavy wood frame, more expensive to construct. Doesn't mean the ROI is more.

Be sure you have the details on eve height, finish, etc. It can vary significantly.
  #10  
Old 04-11-2010, 09:45 AM
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Terrel L. Shields Terrel L. Shields is online now
 
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Quote:
Morton buildings generally cost far more than the typical metalframe
Here they cost about the same as light red iron. I see no special advantage over other construction types, and so you may have some instant obsolescence for having a little cupola on top of the barn...or someone that wants the "Morton" name..who knows
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