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Effective Age?

Effective age?

  • Really just a function of condition and shouldn't be singled out.

    Votes: 24 40.0%
  • A way for skippies to hit the target

    Votes: 2 3.3%
  • A good way to avoid too big an adjustment on any one line

    Votes: 2 3.3%
  • A reliable, proven way to show inequalities between properties

    Votes: 16 26.7%
  • Junk Science

    Votes: 16 26.7%

  • Total voters
    60
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Lawrence R.

Thread Starter
Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
Just a poll to gather ideas about effective age. Multiple answers allowed.
 

Thomas Fiehler

Senior Member
Joined
Jun 2, 2003
Professional Status
Certified General Appraiser
State
Ohio
Larry-Since it is impossible to accurately gauge the EA of the comparables, what is the intent/purpose of this poll? (Just curious)
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
You are not drawing me into this discussion .. no way ... other posts have been made here that make it plain how most feel ... there is not comfort in numbers in my opinion.
 

Lawrence R.

Thread Starter
Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
Larry-Since it is impossible to accurately gauge the EA of the comparables, what is the intent/purpose of this poll? (Just curious)


The intent is for the education of a trainee that may be watching, whose supervisor says it is the best way to appraise.

I also want to see what percentage of appraisers are using it and maybe they will go on to explain why they use it.
 

Elliott

Elite Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Oregon
You forgot the poll question....

__EA, fundamental to the appraisal process, facilitates comparing
properties with different actual ages and condition.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I don't do effective age for the comps...only the subject.
 

Lawrence R.

Thread Starter
Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
I don't do effective age for the comps...only the subject.

Then is it safe to assume, that you do not use it as a line item to adjust in your comparables grids(residential)?

No 5000 dollars per year for every year it differs from your comparables?
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
$5,000 a year? I think not! My age adjustments are usually $500 a year and I don't do any for less than 5 years difference...most of the time.
 

Lawrence R.

Thread Starter
Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
So you adjust the effective age of your subject to the actual age of the comparables?

I am understanding you right?
 

Thomas Fiehler

Senior Member
Joined
Jun 2, 2003
Professional Status
Certified General Appraiser
State
Ohio
Larry-As I implied with my original post, it is impossible to determine the EA of the comparable unless you have personally viewed that property. I would suggest that if you do make adjustments for differences in age that the straight line method, though weak at best, would be the best choice. I am always amused when reviewing a report where the subject is 7 years old and the appraiser lists the EA as 2 or 3. That tells me they have no grasp as to the Cost Approach or physical depreciation. If you make adjsutments based on EA, how do you support the calculation for the comparables?
 
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