Age/Depreciation Adjustments in Sales Comparison

[fifteen]

Please give me an example of a home that's older than it's actual age. Take your time.... make sure it's correct, irrefutable and legal
A simple request

 

[CANative]

Actual Age = Actual Age

Effective Age = Condition & Functional Utility

Actual Age = Actual Age

Effective Age = Actual Age less the age that has been taken off by modernization (and vice versa).

15... see my graphic. That's how it works. Actual age is the ruler which does not move. Effective age is the sliding scale that moves in either direction during the life of the structure.

Please give me an example of a home that's older than it's actual age.

There are no examples because you have not asked the right question.

 

[Hamlet]

Please give me an example of a home that's older than it's actual age.

You have been given several examples of the effective age being older than its actual age.

You seem to be hung up on the thought that actual age is the same as effective age. They are two different things. No one is saying that a house is actually older than it actually is. However, the condition of the subject may be such that the effective age is older than the actual age.

 

[fifteen]

Ham: Actual age is written in stone - i don't rewrite history. Got an example where effective age exceeds actual age? It doesn't exist and help me in my amusement - find one

I await enlightenment

 

[Hamlet]

Ham: Actual age is written in stone - i don't rewrite history. Got an example where effective age exceeds actual age? It doesn't exist and help me in my amusement - find one

Well...like I said, there are examples given in this thread.

What would you say about a home that was built almost a thousand years ago and is still occupied? Is that possible and what would you say the effective age of that home was? Do you think a bank would loan money on a home that had an effective age of 1000 +/- years, or how about one that had an actual age of 1000 +/- years, but say an effective age of 10-20?

 

[CANative]

I gave you an example early on (the brand new hotel/casino that under peforms due to it's parking problem). It's effective age is greater than the proposed casino next door which hasn't even been built yet.

 

[Hamlet]

Here is a home that is 600+/- years old actual age. Hmmm....it is still in existence, but with out a roof and windows, which it undoubtedly had when NEW, I'd have to say that its effective age would exceed its actual age.

 

[fifteen]

Nice try Ham and Boyd. Hams prob is longevity and loan apps. Gregs is external depreciation.

Effective age and longevity is built on what we know. 1,000 years? I'd rater pee in the river, no offense, I'd probably catch a good hagus

 

[fifteen]

Amazing - think the first appraiser said it'd only last 200 years? Effectively 2,000 lol

Well...like I said, there are examples given in this thread.

What would you say about a home that was built almost a thousand years ago and is still occupied? Is that possible and what would you say the effective age of that home was? Do you think a bank would loan money on a home that had an effective age of 1000 +/- years, or how about one that had an actual age of 1000 +/- years, but say an effective age of 10-20?

 

[CANative]

What method are you using to estimate depreciation?

Edit: Why did I even ask this. The bottom line is that you have to stop accepting appraisal assignments until you understand this concept.