Functional Depreciation

[Brad Potts]

I've only used functional a few times. I used it when you had to walk through one bedroom to get to another. I've also used it for guest houses, but am no longer using it for pools since this is California. What are some other instances where you would use functional obsol., like maybe the top 5.

 

[Tom Barclay]

I once did an eleven bedroom house, with one bathroom. Also, old farm houses that have all the bedrooms upstairs, and the only bath is off the kitchen.

 

[Brad Potts]

A friend appraiser did functional for some bad landscaping drainage, I had never heard of that?? Tecate beer tastes terrible by the way.

 

[moe cohen]

"Railroad Style" rooms
Moe

 

[Craig in Oregon]

Was taught (by a competent, honest MAI/SRA) that functional obsolescence
is relative to design parameters typical of the era of construction. So Tom's old farmhouse might be typical of its era of construction but that doesn't make a midnight trip to the downstairs bath from an upstairs bedroom any more convenient. I wouldn't penalize an old farmhouse when compared to other old farmhouses for that reason alone, myself.
However old farmhouses and other types of homes should have design problems fixed as part of a remodel if physically possible. So then an added bath on the second level is a valuable investment.

Most recently, F.O. has come into play on an extensive remodel/addition where
the kitchen was left small and with limited counterspace while two bedrooms and a bath were added. Guess these folks only needed a microwave for the pizza.

Also, very narrow halls or stairways; very small bedrooms and baths relative to the overall size of the home; low ceilings or gable ceilings in 2nd level rooms used as living area; awkward floor plans (many varieties), too steep entry stairs,

Here in parts of Western Orygun some homes were built in the 1950's through mid-1970's with radiant ceiling heat (electric resistance cables in the ceiling between sheetrock and a coat of plaster) and these are inefficient (unless the attic and floors are very well insulated) and meet buyer reluctance. Cost to cure: a modern heating system at $$$$$$$
Yet they do produce heat even if some is wasted into the attic and are noiseless and dustless so the adjustment vs. FA gas/HP is usually not full cost to replace the existing system.

Just a few ideas

 

[moe cohen]

Do you know what Gas on Gas heat is?
Moe

 

[DonPearsall]

I have knocked some homes for the following functional obsolescence (AKA depreciation).

1. Bedroom access only through another bedroom or other private room.
2. Lack of public access to a guest bath (i.e. the only bath was in a bedroom).
3. Stairs to another level that were not to building standards (circular stairs, steep stairs, narrow stairs)
4. Bedrooms that did not meet egress requirements.
5. Home located far from the car parking area, such as steep stairs to house entry, or garage located far from house.

There are zillions but these are the top ones I can remember.

Don

 

[Craig in Oregon]

OK I'll ask:
what is gas on gas heat?

The low price of beer (appraisals) does not necessarily improve the quality of the beer (appraisals)

I'm more of a Pacifico person myself when south of the border brews are to be
sampled.

 

[Tom Barclay]

Moe,
I also have never heard of gas on gas heat, please enlighten.

 

[Dave Fitch]

Functional obsolescence due to superadequacy. Appraised a 1,000 square foot dwelling with a 1,600 square foot attached garage with loft. Granted, the garage was worth something on the grid more than usual, but nothing like the amount the Cost Approach comes up with. A functional obsolescence adjustment then is needed on the Cost Approach for superadequacy (overbuilt) to get you back in line on the Cost Approach. No negative functional adjustment is made on the grid, however, a larger adjustment for the huge garage is needed (due to market appeal). In essence this large garage is an asset, just not what it would cost to replace it though.