Actual Age Adjustment

[Joe Flacco]

I don't make age adjustments. If for some reason it matters I will discuss it in the reconciliation of the sales comparison approach.

 

[Functional Obs]

Just curious what yall use for an Actual Age adjustment? Appreciated any replies!

Almost never happens b/c I use the "effective age" (i.e. condition rating) for my adjustments ... but ... in the one or two cases where I did do an actual age adjustment, I used a regression analysis. No, I don't know how to do a regression analysis from scratch--I used Spark.

 

[Terrel L. Shields]

I agree that age may be as relevant as condition.

Age-condition is effective age basically. I use reverse engineering the comps and develop the effective age by the Donald Epley method. Then I can calculate the cost per SF per year and adjust accordingly.

 

[Functional Obs]

Just curious what yall use for an Actual Age adjustment? Appreciated any replies!

98% of my reports adjust for condition.

 

[Mark K]

A 50 vs. a 60 yr old house, probably not. A 15 vs. a 25 yr. old house in similar conditions, very likely. A 15 and 25 house probably has similar floor plan/design. But a 15 yr house will probably need a roof, furnace/ac, water heater, all flooring, maybe some plumbing fixtures, etc. A 25 yr house probably has many of these items already replaced. So as usual, it depends. I often made condition and age adjustments that offset each other but I liked to break them out to show that they were each considered and explain why.

 

[TerryRohrer]

98% of my reports adjust for condition.

How do you derive/measure the condition adjustment?