Effective age

[ZZGAMAZZ]

My take on the consensus of the Forum is that the opinion of value of virtually all real property improvements is market extracted; and if so, the total economic life (rather than "age" as in a prior post) might also be based upon the typical, mean life expectancy of local improvements in a market-driven kind of operational definition--with the caveat that the concept might not be significant enough to warrant the additional analysis that would be required, i.e., who cares?

 

[Mztk1]

Like other math guys, I am also an epistemology guy. I also know bogus induction when I see it (and weak and strong induction).

Perhaps my distrust of extracting total economic life from the market is a "hasty generalization".

I doubt, therefore I am. :new_llying:

 

[Fred]

I doubt, therefore I am. :new_llying:

Dubito ergo sum.

 

[Thomas N. Morgan]

I agree with: Lawrence R, Seven Santora, Lee Ann, Rufus, Jim Klos (Mostly)

I have never been able to find out when and where the term Effective Age and the rationale for it first appeared in any authoritative appraisal publication.

The Valuation of Real Estate (1963) by Dr. Alfred A. Ring, (professor at the University of Florida) makes no mention of effective. The term had existed in accounting some time, in connection with depreciation, and I think was simply borrowed and inserted into the appraisal literature, much like the idea of Matched Pairs, which was used by Terman in in 1930's in the study of identical twins.

 

[Mztk1]

Well I am unsure what you mean by "Mostly". So you agree with each of us for the most part, or entirely with the others and me just a little less, or do you agree with the others but are most in agreement with me?

I better start learning my latin...

incondito ergo sum

 

[Fred]

Thomas,
I referred to the first usage I know of earlier but not by name. I will PM you with details.

 

[Thomas N. Morgan]

I quit doing appraisals for lending purposes some time ago, so maybe I'm looking at the wrong form, or else don't how to read it. The 1004 form I just looked had Actual Age in the left-hand column. I did not find EA, although almost all appraisers reports I have reviewed use AA/EA when describing the subject or the comps.

 

[CANative]

The Louisiana Purchase was in today's dollars for $331,787,971.

I don't think that could even buy Arkansas today. Maybe Oklahoma.

Hey now! That's Boyd Country. The arrow on the google photo is where my grandpa Doc's father is buried in the Boyd section. He died before WW1 when his mule wagon tipped over on him and trapped him for several days. Our cousin still holds down the family farm a few miles outside of town.

 

[CANative]

Page 1, left side, 3/4 of the way down, General Description. Effective age is right below year built.

 

[CURT VAN HOOSER]

Hey now! That's Boyd Country. The arrow on the google photo is where my grandpa Doc's father is buried in the Boyd section. He died before WW1 when his mule wagon tipped over on him and trapped him for several days. Our cousin still holds down the family farm a few miles outside of town.

Are you by chance, related to Timmy Boyd in Tipton Tennessee? He has family all up and down that part of the country...