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Actual Age Differences for Comparables

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dane84094

Freshman Member
Joined
Feb 18, 2008
Professional Status
Certified Residential Appraiser
State
Utah
I am posting this question to see what some of your opinions are. I typically do not use comparables newer/older than 10 years of my subject as in my area I can usually accomplish this. "But" this time I can't. My subject appears to be an original farm home surrounded by newer homes as the valley grew through the years. Comparables are newer by 20 to 30 years. I have never used comparables with this kind of difference in age. Have you? I live in Salt Lake City so it is not like the #sales are limited, just a unusual situation. Would you go outside of the typical area limits to find comps similar in age or use the newer/age comps?
 

stefan olafson

Senior Member
Joined
Apr 2, 2003
Professional Status
Certified General Appraiser
State
North Dakota
Sometime effective age is much more important than physical age. It's not always possible to use sales from the same or similar physical age, but you can look at homes 200 years old and older along the east coast that have an effective age (look like age) of less than 20 years.

Don't get hung up on physical age.
 

Mr Rex

Elite Member
Joined
Jan 12, 2004
Professional Status
Certified Residential Appraiser
State
North Carolina
I'd use both sales in close proximity of newer actual age and ones further away of similar actual age.
 

gunder

Freshman Member
Joined
May 29, 2008
Professional Status
Certified Residential Appraiser
State
Minnesota
I had a similar situation in St. Paul earlier this year, where I was asked to appraise a 1980-built split level in a neighborhood where the sales where predominantly 1.5-2 story homes built in the 1920s & 1930s. The newer splits weren't unheard of in the neighborhood, it's just that none in close proximity to my subject had sold recently. I ended up doing "two appraisals in one" where comps 1, 2 & 3 were older homes in close proximity, with similar effective age (this is key), GLA & room count. Comps 4, 5 & 6 were similarly aged splits (also in predominantly older neighborhoods) that exceeded the preferred distance. Attacking it from two different angles turned out to be more work obviously, but also very interesting, as both solidly supported my value conclusion. My client was impressed, too, giving me some buzz around his office, which has resulted in more assignments.
 

OSU Beavers

Elite Member
Joined
Jan 10, 2007
Professional Status
Licensed Appraiser
State
Oregon
Just be sure to have one older home on your grid to 'bracket' the subject's age on the lower end.
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
Sometime effective age is much more important than physical age. It's not always possible to use sales from the same or similar physical age, but you can look at homes 200 years old and older along the east coast that have an effective age (look like age) of less than 20 years.

Don't get hung up on physical age.

Effective age is more important than chronological age.

But, I agree..."don't get hung up on physical age."
 

Rufus

Junior Member
Joined
Apr 3, 2008
Professional Status
Licensed Appraiser
State
Indiana
In addition to the good advice you see above, I also look back further than the 3, 6, or 12 months the lender has in their guidelines. I've included sales from the immediate area that have sold 18 months, 2 or 3 years or more ago. I make time adjustments, positive or negative or not at all, depending on what my market analysis shows. Since I provide a five year synopsis of the market I can simply reference it in my sales comparison comments as the support for said adjustment.

Also, you can use active and pending listings when they show the similarities you need.

So comps 1 - 3 nearby, 4 -6 similar but distant, and 7+ similar nearby but dated sale(s) and or act/pnd.
 
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