Effective Age-Condition

[Wj13149]

I have often wondered why there are adjustment grids for both effective age and condition? I apologize up front if I am boring you a dumb question but could someone shed some light?

 

[Mike Garrett RAA]

gee, my grid says "actual age" not effective age. What does yours say?

 

[Richard Carlsen]

Mine also.

Under condition, I put Avg, Below Avg, etc and then my estimate of effective age. It is on that effective age that I base my condition adjustments.

Works for me.

 

[Thomas Fiehler]

This has been discussed many times but the one question that always remains unanswered is "How did you arrive at the effective age for the comparbles"?

 

[Elliott]

We've had 15 years of TAF, state boards, and ASC,
so what did your supervisor tell you was the
difference?

 

[Richard Carlsen]

This has been discussed many times but the one question that always remains unanswered is "How did you arrive at the effective age for the comparbles"?

It is an estimate; the same way that the appraiser arrives at stating in the sales grid that the condition of a comp is "Average".

 

[38Scarcello]

Should CR's be asking questions like that?
Signed, Don't Double Dip 'Em

 

[RSW]

I have been told that the age adjustment is for depreciation based upon age. A condition adjustment would be made if there is an unusual item like the need for a new roof or some other short lived item. It is not necessary to made both an age adjustment and a condition adjustment at the same time. But, it could be done if there is a need for the adjustment.

 

[Terrel L. Shields]

"How did you arrive at the effective age for the comparbles"?

You can extract the effective age from the market, but of course, most appraisers don't believe in the cost approach nor do they think that land is appraised as if vacant and available for its highest and best use...thus haven't figured out how to estimate the contribution of the building, therefore they cannot figure the residual left in the improvements and thus cannot invert the annual change into a total life estimate...its impossible.:new_argue:

have been told that the age adjustment is for depreciation based upon age. A condition adjustment would be made if there is an unusual item like the need for a new roof or some other short lived item.

Then someone has been a naughty boy or girl and taught you the classic ways of long and short term depreciation. So see above. As we all know we cannot have any of that cost approach crap...:new_microwave:
Without the use of cost data, I don't see how you can estimate "effective age" except guessing...or as some call it, "Observed" effective age.

 

[Elliott]

Terrel,
My first AIREA residential instructor, 35 years ago, said, "So after you
inspect the property, you go sit down across the street and ask yourself,
how am I going to figure out what this house is worth?" I've been using
that method ever since. Are you saying he was wrong?