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Exterior Construction (Asbestos vs. Vinyl Siding)

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BlueDog007

Thread Starter
Member
Joined
Jan 25, 2002
Professional Status
Certified Residential Appraiser
State
South Carolina
Ok gang.......

We are having a difference of opinion in our office. Subject is 900-1000 sf; Asbestos Siding; age 45-50 +/-. Neighborhood CMA range is $30,000 to $60,000, age range of 25-60 - predom 45. Appraiser obtained 2 asbestos sales, and one vinyl sale ranging from $37,000 to $45,000. Subject is under contract for $32,500.

We can not differentiate a value for the difference in exterior siding via match-pair, etc... Some 1000 sf homes sale for $30,000, other 1000sf homes sale for $60,000. A difference in condition and renovations. This is a low end neighborhood. Please offer suggestions and opinions as to if an adjustment for quality should be made for the difference in asbestos vs. vinyl siding. Much appreciated !!!
 

Verne Hebert

Senior Member
Joined
Feb 25, 2002
Professional Status
Certified General Appraiser
State
Montana
My experience has been the bottom of the market always demonstrates challenges in quantifying consistent extractions. This is because of the nature, first time buyers and less educated buyers; and the changing force of the rental market applying pressure to the bottom of the ownership market as mortgage rates drop and dictate the economic pressure.

You are looking for a value adjustment. It may be a marketability issue and not a market value issue. Look for extended marketing times on the property with asbestos siding. In terms of utility the asbestos siding offers greater life.

Here in Montana we have a lot of easements on property. One would reason there would be a dimunition in value from a power easement through the property. The truth is I have not been able to measure this. An entended marketing period can be measured however.

Good Luck!
 

Judy Whitehead (Florida)

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Our market here sounds a lot like yours. I have never been able to prove a difference in marketability in the types of exterior sidings. Other factors in low end sales appear (in this market) to have more impact - such as condition of the property, updating, neighborhood, site size, etc. Also, the sales here seem to do the same things yours does. I have done appraisals with asbestos siding and am unable to prove any difference in marketability. All I do is disclose, disclose, disclose, including the comment that any remodeling or changing of the exterior would involve special requirements which could be more costly than other types of siding and let the buyer, lender, etc. make their own decision.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Our market does not appear to differentiate hugely for difference between vinyl and asbestos: as long as no one has painted the asbestos OR if the paint ON the asbestos is fresh....

However if the 'street appearance' is rough, visible craked tiles etc... the difference seems to be pretty close to that between a wood sided home in average to fair exterior condition, and a vinyl sided! (and most asbestos sided homes are a tad weathered).

Have to agree though that most of MY market extraction shows interior/window etc remodleing is of greater value differnce thatn the vinyl..... and how many beat up interiors do you see with fresh vinyl on the outside(?)

Unles the Rolox window guy got there before the repo-man :roll:
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
ricbiggers --

You can't find any difference between average vinyl and "asbestos" because the property you are appraising is too close to the baseline of the marketplace, wherein it is basic housing only. If it's reasonably weatherproof and isn't sitting over the propety line, somebody is buying it because of its price.

I never use the word asbestos under any circumstance. Go out of my way to say is somehow else. 1950s shakes, etc.
 

Jim Bartley

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
My experience with these types (entry level) homes is that, all things being equal, people do not pay more for vinyl vs asbestos siding. Where I do see a difference is if the siding needs painting or there have been a number of other improvements like new roof, windows, carpet etc...In other words the overall condition is superior.
 

bradellis

Member
Joined
Jan 16, 2002
Ricbiggers,

Be careful in your wording- I know from experience. I appraised a house that had those cement shingles and I was CERTAIN they contained asbestos. Turned out, they did not.

While you are probably right, there is no guarantee. The only way to know if asbestos is present is by microscopic inspection by a pro. I suggest you mention that the "maY" contain asbestos, unless you know absolutely for sure.

I have never seen a measurement of value between types of siding (except cedar) that I could not disprove with other analyses. I'm guessing that you are getting hung up on this unecessarily.

Unless asbestos is friable, it is not dangerous. Just mention in your report that the siding might contain asbestos, you looked for market data indicating an impact on value and found none. Paired sales analysis is good not only for identifying when to make adjustments but also when not to make adjustments.

Good luck.

Brad Ellis, IFA,RAA
 

JeffMann

Freshman Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Larry Lyke and JimBob are correct (in my opinion). This market is buying shelter housing. Even the condition of the home does not make as much of a difference as one would think. These “shelter” homes are purchased because the buyer can afford them. The buyer does not pay as much attention to condition when negotiating as they figure they will fix it themselves.

Jeff
 

Douglas Mackay

Sophomore Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Montana
I agree with the general consensus...In my market there is not enough data to support an adjustment for variance in siding material. I still call it asbestos but one appraiser in our area calls it "fibrous shingle"
Bottom line...disclose

Doug
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
If you listen to the vinyl siding salesmen, you get an 100% return on vinyl siding vs. frame or asbestos siding. However, I've been trying to prove it for 25 years. I have never been able to show any difference between frame, asbestos and vinyl siding. If there's a difference, it's due to condition of the home, not the exterior.
 
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