Effectve Age

[NJAPRAZE]

What method do you use to calculate for a subject? Please xplain - thx!

 

[TerryRohrer]

WAGuesstimate! The best approach I have seen is to create a spreadsheet with the components or component groups listed, along with their approximate percentage of the whole, in terms of replacement cost (Marshall and Swift used to have that breakdown in their Residential Handbook). Then, you can estimate the age of each of those components and calculate a weighted average based the age of the components and their contribution to the whole.

 

[Terrel L. Shields]

Personally, I try to pick 3 sales that are similar effective age and from those estimate a comparable effective observed age.
But you can do what Ter above suggests.

George Dell's method is similar to this one

Effective Age Calculator — Choice Valuation, PLLC

www.choicevaluation.com

or on dropbox

Dropbox

www.dropbox.com

I modified the premise of Dells with my own assessment based upon Nat'l Building Cost page 11 - Quality classification. There are plenty of different ways to skin this cat.

 

[jay trotta]

Effective Age – The age of a structure indicated by its condition and remaining usefulness (as opposed to its actual age). Good maintenance may increase a building’s effective age, and poor maintenance may decrease it; for example, a 50-year-old home that has been well maintained might have an effective age of 15 years, meaning that its remaining usefulness is equivalent to that of a 15-year-old home.

The Question here is who and how the EA was determined.

IMO- this is where an appraiser's experience/knowledge is a factor, VS an AVM, which would be clueless (IE: no visual perception) and the Risk factor increases as blindly as the writer/AVM). Also, comparable selection adds to the flavor (EA) of the market acceptable indicators as of the effective date.

 

[Mejappz]

The Marshall & Swift Residential Cost Book has a section on deprecation in which you can calculate effective age. It uses a non-linear trend to extract the effective age, so it is going t be different than what you get from the Age-Life straight-line method.

The spreadsheet from Dell that T-bone posted is a good one, and it's free. National Building Cost has its depreciation table. You estimate the effective age; the table gives you % good/deprecation. Solomon Cost( which uses National Building cost data) also has a similar way of extracting effective age from the market.

 

[Terrel L. Shields]

similar way of extracting effective age from the market.

With putting it in a spreadsheet to automate, then you can copy>save as picture> and paste into your report. Then you don't get asked how you calculated it.

 

[Elliott]

CA Grasshopper, learn all you can, then figure it out for your market.

Solomon Adjustment Calculator

www.solomonappraisal.com

 

[Mejappz]

With putting it in a spreadsheet to automate, then you can copy>save as picture> and paste into your report. Then you don't get asked how you calculated it.

Dell has an updated spreadsheet that is much easier to use; unfortunately, the forum does not allow spreadsheets to be uploaded.

 

[Terrel L. Shields]

the forum does not allow spreadsheets to be uploaded.

Actually, you can create a zip file with it and the forum will attach those.

 

[Mejappz]

Ah, I found a link to the download.

Effective Age Calculator — Choice Valuation, PLLC

www.choicevaluation.com