Bomb/Storm & 20" logs for home

[Ray Miller]

You know they never told us in school it would be like this. things were sure simple. Just find your comps and adjust.

Now to the subject matter. :?:

Brand new home. Just built this summer. It has 19" to 20" logs inside walls and outside walls. Any additional value in this size log. No comps in area with this size logs. Most are 10" to 12". :?

Another Kicker, it has a 1950's Bomb/Storm Shelter, fully bedded and supplied. Any Value concreate walls, bottom and top 12 inches thick. Any value? :twisted:

Why do newbe's get these kind? :?: :wink:

 

[Dee Dee]

Those are some big logs! 8O
Don't know about your area, but the bigger logs tend to cost significantly more to build with and as a result those homes also sell for more. Good luck finding comps.
I wouldn't pay too much attention to the bomb shelter, you'll never find any comps to justify giving it any great value.
Glad I'm not you. :wink:

Dee Dee

 

[Jeff Horton]

I will second Dee Dee's comments. Cost to build is way up for sure. Log homes are hard enough to appraise in out area. I have my doubts that the extra large logs would add anything ot value in my market.

Bomb shelter, same thing. Probably no value here except maybe as a work shop?

 

[Tim The Enchanter]

Perhaps if all log home comps have smaller logs, the big ones are a superadequacy, and no value in the market. What makes it better? Or is it just more expensive to build? Then again I don't know your market, or much about log homes for that matter.

Bomb shelter :lol: Seen a few of those, but not many. Maybe good for storage or work room. But how much value will your buyers give to that?

Ah well, better you than me. good luck with it.

 

[Richard Carlsen]

Even here in Northern Michigan, logs that size would have to be trucked in, most likely from the N/W. Cost is significant.

Value, though highly enhanced by very large, well insulating logs, may not be equal to cost (as it is up here) due to market resistance to log homes unless they are personally designed, built, etc. Don't be surprised if cost approach is quit a bit higher than the indicated value.

Comps: Search far and wide for any log houses that have sold in the past 24 months or so. If there are none then search for homes of similar quality levels and similar overall appeal and utility (i.e. acreage, waterfront, golf course, etc.) Then explain, explain, explain and when you are finished, put in an addendum explaining the explanation. When they come back and ask for two log houses, tell them to read the report. If they say, "We have to have at least two log house comps” tell them that since there are no known log houses, it looks like they will have to make an underwriting decision.

I have one large log house in construction right now with 16-18 inch logs (it has been under construction for the past 2+ years). The owner will have about $840,000 into the house when finished but best indicated value is in the low $700,000. Log homes are not in that high of a demand up here surprisingly enough. They are of interest to the public but the market is seldom willing to pay a price equal to the cost.

Don't be afraid of this on. Use it as a learning tool.

 

[Steve Owen]

Ray, good advice from all previous posters. My personal favorite is Richard's line:

Value, though highly enhanced by very large, well insulating logs, may not be equal to cost

What you need to consider is the extra utility they will get from the extra large logs (actually the same question will help you with the bomb shelter, too - in my area, where tornados are common, the bomb shelter would be worth something). Giving that some consideration will tell you how to adjust your sales and also what kind of extra obsolescence, if any, is appropriate in the cost approach.

Some sample questions: Is the extra insulating value equal to the cost? Does the extra large log improve the appearance and therefore the design and appeal? Or, does the extra large log reduce the interior usable space? What about durability; will the house last longer and will the market pay anything extra for that? Of course, the ideal situation would be to find a comp that sold recently that has extra large logs; roflmao.