Contributory value of screened patio.

[sputnam]

I am appraising a home in Ridgeland, MS that has a very large screened in patio area. The patio area is between the main home and the pool house, and the owner advises the cost of screening in this large area is aprox. $100,000. There are not many homes here that have this amenity, and I am wondering what some of you may allocate for this feature in areas where it is common. Is it a percentage of cost new?
Thanks for any help.
Cole Spencer

You don't need many homes with the same amenity. You need one pair. Of course, more is better. You may also use other methods including but not limited to, depreciated cost analysis. There are more than 30 recognized methods for deriving adjustments. The best ones for your situation depend on the particulars of the dataset available.

 

[Zoe]

You'll have to go with depreciated cost but I can't see $100K. Does it have a full kitchen, built in hot tub, theatre, playground, shower, ................?

My first impression is owner is lying to you or they got ripped off BBBBAD.

 

[Zoe]

Depreciated cost is fine. Use a reliable source. You can't bracket some things all the time.

 

[Zoe]

Surely they got a toilet too if it cost 100K.

 

[Tom D]

Depreciated costs, yea. $100,000 minus 10% physical depreciation = $90,000 adjustment. Good luck with that. And how much do you give for an over improvement on the cost approach, since there is no data in the first place to figure it's contribution to the value. Some of you seem not to be thinking correctly.

This is getting into unknown, prove it, territory for your work file. These are the appraisals that you wish you never took, for the problems that they can potentially cause. But there are a lot of expert people here telling you, you can do it. rah rah rah.

 

[Zoe]

Depreciated costs, yea. $100,000 minus 10% physical depreciation = $90,000 adjustment. Good luck with that. And how much do you give for an over improvement on the cost approach, since there is no data in the first place to figure it's contribution to the value. Some of you seem not to be thinking correctly.

This is getting into unknown, prove it, territory for your work file. These are the appraisals that you wish you never took, for the problems that they can potentially cause. But there are a lot of expert people here telling you, you can do it. rah rah rah.

Your being difficult. You are almost absolutely positive that screened patio would not cost $100K to replace.

Lets consider it has a pool. Okay. Is any house in the immediate neighborhood valued more than this house?

Let's get a reliable and credible source of replacement cost on the screened patio.

You do have to do depreciated cost. Is this an over improvement? What will buyer do?

 

[Zoe]

Your fine doing depreciated cost to replace as an adjustment. Try your best to find a sale higher than your appraisal on MV appraisal. Read the definition of MV you are certifying to.

Don't trust homeowner on cost to replace the screened patio.

Sounds like a really nice house that many buyers would like.

 

[Tom4value]

“There are not many houses in this area that have this amenity…”
If that doesn’t ring the “Overimprovement “ bell, I don’t know what does.

 

[Surf Cat]

As long as you have the meat and potatoes done.... meaning, all the components of bracketing and or equality and similarity are all covered...AND you expanded the parameters of time and distance with an extensive search and commented as such.... just reconcile to the high end of the adjusted range to account for the screened in patio and be done with it.

 

[Tim Hicks (Texas)]

Depreciated costs, yea. $100,000 minus 10% physical depreciation = $90,000 adjustment. Good luck with that. And how much do you give for an over improvement on the cost approach, since there is no data in the first place to figure it's contribution to the value. Some of you seem not to be thinking correctly.

This is getting into unknown, prove it, territory for your work file. These are the appraisals that you wish you never took, for the problems that they can potentially cause. But there are a lot of expert people here telling you, you can do it. rah rah rah.

There are holes all through the depreciated cost method.