netpresentvalue
Freshman Member
- Joined
- May 26, 2017
- Professional Status
- Certified General Appraiser
- State
- Alabama
I need to support an effective age; not just state my opinion of it. For most of my career, my mentor stated their opinion of the effective age of a building without much discussion in support for it. I have a community SC built in 1981 but was "remodeled" in 2011 with a new facade and new roof; not much else was remodeled. What is the proper methodology in determining a defensible effective age? Look to the age of competing properties, i.e. properties with similar rent rates, which reflect market expectations for similar buildings?
Also, is this formula for an effective age adjustment logical and valid?
=(Mkt. Cond. Adj. sale price/sf) x ((eff. age of comp - eff. age of subject)/total economic life)
so, say, $21.68 x ((20 - 23)/40) = -$1.63 (rounded)
Also, is this formula for an effective age adjustment logical and valid?
=(Mkt. Cond. Adj. sale price/sf) x ((eff. age of comp - eff. age of subject)/total economic life)
so, say, $21.68 x ((20 - 23)/40) = -$1.63 (rounded)