Effective Age

[olsemlisa]

Can a 121 year old house have an effective age of 25? If so, what would determine that?

 

[glenn walker]

Can a 121 year old house have an effective age of 25? If so, what would determine that?

Tell us about the 121 year old house and it better be a good story line

 

[Tru Red]

Can a 121 year old house have an effective age of 25? If so. how would that have been determined?

Yes. If the 121 year old house appears to be approximately 25 years old (in the observer's determination) they could assign it an effective age of 25 years.

"Effective age is simply the difference between economic life and remaining economic life of the structure. The age is evident by the condition and utility of the structure. The level of maintenance employed by owners or occupants responsible for maintenance is based upon pride of ownership and can influence the effective age of a building. If a building is better maintained than other buildings in its market area, the effective age of the building will be less than its actual age."

 

[shrubberyvaluation]

Can a 121 year old house have an effective age of 25? If so. how would that have been determined?

Yes. If the 121 year old house appears to be approximately 25 years old (in the observer's determination) they could assign it an effective age of 25 years.

"Effective age is simply the difference between economic life and remaining economic life of the structure. The age is evident by the condition and utility of the structure. The level of maintenance employed by owners or occupants responsible for maintenance is based upon pride of ownership and can influence the effective age of a building. If a building is better maintained than other buildings in its market area, the effective age of the building will be less than its actual age."

I Personally don't like effective age.. I think it just confuses, it is too subjetive, and it is not considered in the appraisal. You could have a very well maintained house with little or no remaining economic life. I've seen houses on properties with multi-million dollar land values where the dwelling contributed virtually nothing, but if you stick that dwelling somewhere else it would have a long economic life.

 

[sputnam]

See other thread with the same topic and OP

 

[Tom D]

we have 300 year old townhouses with effective ages down to 1. the word is called rehabbed around here.

 

[glenn walker]

See other thread with the same topic and OP

Just another troll

we have 300 year old townhouses with effective ages down to 1. the word is called rehabbed around here.

Her property is being condemned by City -0- Physical or effective age : ) LMAO

 

[RCA]

Can a 121 year old house have an effective age of 25? If so, what would determine that?

As a matter of fact a 120 year old house can have an effective age of 0. As a matter of fact some houses built back then had a quality of lumber, old growth heart redwood, that you can no longer find, and to be honest they deserve better than that - but we then have to give them a negative effective age, which isn't allowed. And assuming they were kept in good condition, built on bedrock, are in a prime location, then superficial components, interior doors, windows completely done over with high quality materials and workmanship - you may very well conclude an effective age of 0. I did one not too long ago like that.

 

[Tom D]

ivca, just for your info. i had a very friendly reviewer who told me that CU did not like you saying a rehabed home was the same condition as a completely built c1 home. now i do a lot of those, and i consider a c2 to be equal to to a c1 because i think buyer's do here. but FNMA, aka CU, believes that a c1 new construction should have an adjustment verses a new c2 rehab. in that case a new rehabed home, by CU, cannot have an affect age of "0'. to let you know, that when i started to make a small adjustment for never lived in c1 verses c2 not lived in rehab, my grade on their report card was better.
just letting you know how CU thinks in this matter, but it's your decision.

 

[sputnam]

By the UAD definitions, a rehabbed house can't be C1. It's a C2 (or worse).