Age/Depreciation Adjustments in Sales Comparison

[CANative]

Chronological age and effective age are two different things. One is an unchangeable fact and the other is an opinion (of an appraiser, by the way) which is subject to change. Effective age can be decreased by maintenace and updating and thus increase the remaining economic life of the structure or effective age can be increased by poor maintenance and changes in the market thereby reducing the remaining economic life.

This is a straight forward and relatively simple concept. How can you appraise and not understand it?

 

[CANative]

You are relaying facts and saying that a 5 yr ol saubject is effectively 7 is saying that factually in 2 years it will be there.

That not what effective age is about. It's saying that in the appraiser's opinoin there is as much depreciation in this five year old house as there is in a similar seven year old house.

A brand new car with an 8-track tape player, bald tires and a butt print on the driver's seat.

 

[fifteen]

A property cannot exist beyond itself. It is what it is and always will be, you can't rewrite history and be believable. If it's actual age is 5, that is written in stone and unchangable. Anything else goes to condition or external or functional or any other thing you can think of. Immutable fact - 5 years old.

Anybody getting the feeling that sleazy has always been here? Hey, WTF is my career :new_all_coholic:

 

[CANative]

Effective age is an opinion and not something that actually exists.

 

[fifteen]

Then why are you defending the right to over-age your comps or subject? It exists. My home is 3 but effectively 1. Of course some that are trying to make value may say it's effectively 8 lol - rex. You're right, effective age can be based on your analysis included in the report or it can be some wild machination. It never can be expressed as older than the subject actually is. That would be a .... lie
A property cannot be older than it actually is... unless you're trying to bag a 16 yr old and saying she's 18 and legal. I think the guy that wrote that has something to hide

Don't distort the facts - it's unbecoming

 

[EDWARD BERRY]

15-
I Don't Know How Many House You Have Appraised, But I Have Appraised Over 9,000.

According To My First AI Course, Effective Age Is Calculated Figure, No Appraisers Opinion At All.

Others Have Cited The Procedure.

Now, I Have Been Blessed With To Have Appraised In A Growing Area Where We Have Had The Same Builder Building For Over 25 Years.

Thus, We Have Been Able To Obtain Accurate Date On The Cost And Sp Of New Houses. (land, Dw, Sw, Fence, Etc)

Then When A 4-10 House Sold Many Time It Was The Same Floor Plan As A New One By The Same Builder. Equal Locations.

Therefore A Idiot Chicken Farmer Like Me Can Calculate The Eff Age.

I Can Just Tell You That On A Well Worn House, Curling Roof, Peeling Paint, Etc The Effective Age Can Be Higher Than The Actual Age.

Perhaps You Have Never Encountered That, But That Does Not Mean That It Cannot Exist.

I Am Sorry That Your Appraisal Practice Has Not Encountered It, And I Suspect That In Some Older Cities It Does Not Exist.

Come To Arkie Land, We Will Eat At The Famous Aq Chicken House And I Will Show You An Example Of Eff Age Older Than Structure And How To Calculate It.

Most Respectfully, Arkie Ed

 

[CANative]

It's not older than it is. It just functions more like a similar structure that is older than the subject is.

 

[fifteen]

You want to break the bank of actual age? Sure, Show me the facts your valuations are founded on. Not even actual age? OMG

There's a line drawn between fantasy and fact. If all your facts are fantasy where are you? With all due respect to someone that has my first name lol

Ed - you're describing condition. Waht would it look like if it were never cared for? Does it's effective age exceed it's actual age without care?

 

[fifteen]

Greg, just because I build a 1960's replica doesn't mean it's 50 years old. It means functional and external depreciation - it's still 1 year old. You are bearing witness that the subject is older than it actually is A5/E7. That is a lie. It cannot be older than it actually is
Don't be the appraiser on the other side in court is all I have to say. I mean, really, your valuation can't even deal with the actual age of the subject. Are there any verifiable facts there?

It's not older than it is. It just functions more like a similar structure that is older than the subject is.

 

[PropertyEconomics]

I always love threads with 15 in them ... they always make me feel so incredibly blessed at the education and instruction I got. It is apparent that some have just not been as lucky as I have, and that while good for me, is a shame for many.

Keep up the good fight 15 ..... you are in a losing battle because you dont understand the concepts

AND to that end lets approach it in a manner you can understand .....

The house has an ACTUAL age of 100 years and has been completely remodeled .... the effective age might be 20 years lets say .... IF that is true, and I have seen you argue it ... then the reverse can be true ... the 5 year old home can have an effective age of 10 years .... there cannot be the possibility of one without having the possiblity of the other ... as an effective age theory.