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Burned Down House

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susan weis

Freshman Member
Joined
Dec 8, 2004
Professional Status
Certified Residential Appraiser
State
Virginia
I am working on a report of a house that burned to the ground and was rebuilt. The ONLY remaining original part is the foundation and the fireplace. Those were constructed in 1985. All of the house was rebuilt new in 2016 on that foundation. The lender is requested I date the year built to 1985, I feel as if it should be 2016. Thoughts??
 

Fernando

Elite Member
Joined
Nov 7, 2016
Professional Status
Certified Residential Appraiser
State
California
In parts of Bay Area, many homes are torn down and leave a wall or something. In such a case, it's less regulated to "remodel" than rebuild as a new home. You don't know the hoops you have to go through to build a new home (contributing to high costs of housing here). There so many fees and planning and community review and it gets worse every year. In essence I call it new construction for practical reason.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Date it whatever but the effective age is a blend, so what percentage of the 1985 structure is incorporated? 10%? So if 50-55 yr. TEL, the effective age is only about 2. 10% of fifty is 5 and about 40% depreciated. 40% of 5 = 2 plus zero for 90%, still two
 

Noreen

Senior Member
Joined
Feb 5, 2011
Professional Status
Certified Residential Appraiser
State
New Hampshire
I am working on a report of a house that burned to the ground and was rebuilt. The ONLY remaining original part is the foundation and the fireplace. Those were constructed in 1985. All of the house was rebuilt new in 2016 on that foundation. The lender is requested I date the year built to 1985, I feel as if it should be 2016. Thoughts??

If it were me, I would base the age on the new Occupancy Permit issued for the rebuild. Is the old foundation/footprint an obsolete configuration?
 

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
Date it whatever but the effective age is a blend, so what percentage of the 1985 structure is incorporated? 10%? So if 50-55 yr. TEL, the effective age is only about 2. 10% of fifty is 5 and about 40% depreciated. 40% of 5 = 2 plus zero for 90%, still two

Agreed, foundation is 1985 and construction is current, blend package, similar to an addition for living space; the original is dated and the addition is New, therefore, a blend of depreciation factors. You could get crazy and allocate for the foundation & existing supply lines, either for Well & Septic OR City, there is a contributory cost existing, it depends.
 

glenn walker

Elite Member
Joined
Oct 11, 2006
Professional Status
Certified Residential Appraiser
State
California
You could go C-2 and use the original year with addenda explaining it's a complete rebuild and new from the foundation up * Read definition of C-2 I think that's your easy way out : ) LOL
 

Fernando

Elite Member
Joined
Nov 7, 2016
Professional Status
Certified Residential Appraiser
State
California
The problem is that you can call it as you want but in the future if you use that subject if currently a purchase as a comp later, you need to be consistent. Sometimes I break down gross area as originally built and later built for the comps to reflect better comparison with subject. A week later the comp break down doesn't work with new subject and I can't use that comp because I don't want to be red flag by CU. CU is keeping a record of my comps and if I have any differences, I don't want to be on the radar. In such a case, I have to use another comp to circumvent CU. What a hassle.
 

Rlong

Member
Joined
Jan 31, 2002
Professional Status
Certified General Appraiser
State
Colorado
What does the assessor record indicate. I always use this, as my starting point, and then usually explain the rest.
 
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