Functional Obsolescence

[JULIEWEBB]

I HAVE TO WRITE A DEMO REPORT FOR THE STATE IN ORDER TO GET MY APPRAISER CERTIFICATION. IN THE REPORT I MUST HAVE TWO FORMS OF DEPRECIATION PRESENT. WITH THE BOOMING ECONOMY IN THE STATE I AM IN, ECONOMIC OBSOLESCENCE IS HARD TO PROVE. PHYSICAL DEPRECIATION IS A GIVEN. HAS ANYONE EVER HAD FUNCTIONAL OBSOLESCENCE PRESENT IN A RESIDENTIAL PROPERTY? IF SO, CAN I HAVE SOME EXAMPLES PLEASE? I HAVE NEVER APPRAISED A PROPERTY WITH FUNCTIONAL OBSOLESCENCE.

THANKS,

JULIE WEBB

 

[Willie]

There is a man who frequents this Forum, named Tim Hicks. He is from Texas. From what I gather, there is a lot of functional obsolescence in Texas. External obsolescence too, because of it's proximity to Mexico, and it's notorious heat. If my memory serves, Tim is the board expert on such matters. You might want to send him a private message or something.

 

[Stephen A. Santini]

Julie:

I can tell you about a few forms of functional depreciation that I have encountered here in my area.

1. A home with one bathroom that has no PUBLIC enterence, just "jack & jill" entrys from the bedrooms.

2. A home that was recently remodeled and the MAIN entry was moved from the living room into the kitchen, ( they converted the living room into a bedroom, which also did not have a closet ).

3. A home that has one bathroom, with a tub. toilet, but no sink

4. Unpermitted garage conversions will get a functional hit because now you cannot park cars in the garage. These are usually given a "cost to cure" to return the garage to it full functional utility, which is not that big a deal, although if it is unpermitted, you can't count that as GLA.

Hope this helps you out...GOOD LUCK

 

[Head Surfer]

Originally posted by William Robinson@Sep 23 2004, 01:28 PM
There is a man who frequents this Forum, named Tim Hicks. He is from Texas. From what I gather, there is a lot of functional obsolescence in Texas. External obsolescence too, because of it's proximity to Mexico, and it's notorious heat. If my memory serves, Tim is the board expert on such matters. You might want to send him a private message or something.

It's not nice to try to fool newbie's, remember you were once a newbie.

 

[wyecoyote]

Julie,

Do not type in all caps it is yelling, YELLING. Also tell us where you are located that way we know and someone maybe able to give you assistance in that area.

Consider not just functional but external.

Functional my house has a basement that is entered from the exterior only. I am also located on a four lane arterial. And consider the physical depreciation of the house. Thus, if you want to appraise a property with three then there is my house.

Seriously though. Look for houses on arterials, near train tracks, flight paths, or other external influence. Functional basement accessed exterior only, walking through the only bedroom to get to the only bathroom, wood only source of heat, and bedrooms located on opposite side of the house from the bathroom.

 

[Willie]

Not playing one on a newbie. She's an innocent bystander on a prank directed towards Mr. Hicks. :rofl:

 

[Willie]

certification? Trainee or appraisal license?

 

[JULIEWEBB]

appraisal license

 

[Willie]

Stephen gave some good ones. Are there no older homes in your area? Surely there are some with some functional problems? Just did a 6 acre tract w' a $30,000 barn on it. That's what it would cost. I hit it for 50%+- functional loss, because nobody needs a $30,000 barn on 6 acres around here. It is an overimprovements.

Or a giant house in a small cookie cutter subdivision. Functional loss due to superadequacy.

Sometimes basement homes suffer FL, in my area. Those are kinda tricky.

Good luck.

Might want to ask the supervisor. Surely he/she can pull some samples from their past, to show you.

And welcome, here Julie.

 

[JULIEWEBB]

There are some older homes in the area. My appraiser and I were just talking this a.m. about a property we appraised that was built in the 1920's and it had 6.0' ceiling height in the basement. That would be incurable functional obsolescence because code is 8.0' ceiling heights and the cost to raise the house and increase the wall height two feet would out weigh the value.

Any comments about this theory?
Thanks everyone.
Julie