Age/Depreciation Adjustments in Sales Comparison

[fifteen]

Seriously, prove your point. I want examples of homes that are effectively older than they are

Greg - do not think you're beyond me - poor excuse

 

[fifteen]

I use reality and never adjust out more than the actual age. I don't need to. Straight line physical

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.

 

[fifteen]

Homes effectively older than they actually are - does this need it's own thread? Proof? I'm asking nicely

 

[CANative]

A neighborhood of mass produced tract houses built in the 1960's. They're all 45 years old ±. Most have been updated with new HVAC, 50 year architectural composition roofs, granite counters, engineered hardwood floor coverings, stone bath surrounds and stainless steel appliances. This makes them comparable in effective age to houses built in the late '90's early 2000's. The subject has brown shag carpeting, avocado appliances, three tab comp roof and fiberglass tub/shower combos. It also is 45 years old and has the appeal and functionality of a 45 year old house. Actual age/effective age the same. Other houses in the neighborhood have an actual age of 45 but an effective age of 10 years ±.

Now go away. lol

 

[CANative]

I use reality and never adjust out more than the actual age. I don't need to. Straight line physical

Wait a minute. I'm starting to get it. Are you saying you only adjust for condition and not effective age?

If that's the case then I completely agree with you.

 

[fifteen]

Hmmm, amusement - effective age didn't exceed actual age. Tell them I didn't pay you for your testimony lol

 

[fifteen]

Greg, there are instances of both effective age and condition adjustments, but never does the effective age subplant or rise above the actual age. Never. Effectively it can never be older than it is. To say it is : That would be a lie

 

[CANative]

Hmmm, amusement - effective age didn't exceed actual age. Tell them I didn't pay you for your testimony lol

A neighborhood of mass produced tract houses built in the 1960's. They're all 45 years old ±. Most have been updated with new HVAC, 50 year architectural composition roofs, granite counters, engineered hardwood floor coverings, stone bath surrounds and stainless steel appliances. This makes them comparable in effective age to houses built in the late '90's early 2000's. The subject has brown shag carpeting that has been destroyed by repairing motorcyles in the living room, avocado appliances that stopped working 10 years ago, three tab comp roof on one side and blue tarp on the other side, and fiberglass tub/shower combos that high iron content in the untreated well water has turned a lovely shade of Mars-red. It also is 45 years old but has the appeal and functionality of a house nearing the end of it's economic life. Actual age/effective age are no longer the same. Other houses in the neighborhood have an actual age of 45 but an effective age of 10 years ±.

The remaining economic life is now 2 years instead of 10 years. The effective age is 53 instead of 45.

 

[CANative]

I feel like I've gone above and beyond the call of duty in this thread.

Cheers.

 

[fifteen]

lol - economic life? How can it be older than it is? Are you going by cost approach depreciaton per year and applying it to actual age? It can't be older than what it is