Effective Age of C5 Condition House

[The Scholar]

I'm appraising a house with an actual age of 125+ years. The house is in C5 condition. I use 75 years for total economic life. If I use an effective age of 65-70 years, would that represent C5 condition?

 

[glenn walker]

I'm appraising a house with an actual age of 125+ years. The house is in C5 condition. I use 75 years for total economic life. If I use an effective age of 65-70 years, would that represent C5 condition?

Read the definition of a C-5 House --but I would say no a 125 + year old home in a C-5 Condition is normally near it's end of its physical and economic life unless someone restores it.

 

[George Hatch]

The last time I looked, the M&S Depreciation table maxed out at 20%. I guess the idea was that even a beater can be rehabbed. Parts is parts.

The bigger question is what REL is and whether there is a viable market for the rehab. No matter what, a rehab will be way cheaper than new construction if for no other reason than you're not incurring new development fees and utility connections and so forth. A 125sf home might not even be 1000sf, so the cost to replace a roof, windows, doors and all interior finishes will be limited by the sizes involved. But with that said, is the 1000sf home marketable in that location?

 

[DWiley]

C5 The improvements feature obvious deferred maintenance and are in need of some significant repairs. Some building components need repairs, rehabilitation, or updating. The functional utility and overall livability is somewhat diminished due to condition, but the dwelling remains useable and functional as a residence. Note: Some significant repairs are needed to the improvements due to the lack of adequate maintenance. It reflects a property in which many of its short-lived building components are at the end of or have exceeded their physical life expectancy but remain functional.

 

[Overimprovement]

Read the definition of a C-5 House --but I would say no a 125 + year old home in a C-5 Condition is normally near it's end of its physical and economic life unless someone restores it.

Sounds like this house fits the bill though--65-70 years out of 75 year economic life. That seems pretty close to end of useful life to me anyway.

 

[Overimprovement]

The kitchen with 75 year old cabinets that still open and close would be C5 in my opinion. Each component will have a different economic or physical life. Carpeting for instance is far less than hardwoods. Vinyl siding will be much lower than brick. Brick foundation will be lower than poured concrete, and so on. Fannie expects a condition rating to be a blend of the condition rating for all interior and exterior elements, as well as the bones. Some 100 year old homes have better 'bones' than some new R*** homes I have seen recently. But that gets into quality as well, but I have always held that Q and C ratings were more intertwined than UAD would have us believe...

 

[MrLA]

I'm appraising a house with an actual age of 125+ years. The house is in C5 condition. I use 75 years for total economic life. If I use an effective age of 65-70 years, would that represent C5 condition?

C5 = major fixer...

If 75 is your total economic life...65 to 70 is reasonable. You are basically saying in about 10 years if the improvements are left alone, like half the house would crumble to the ground.

On a side note, call the client. In most cases like this save yourself some headache. Ask them how to proceed and try to get 50% of the fee with no type up and get rid of the headache. Take lots of photos.

On a side note, I'm usually around 40 at 80yrs.