Historic Home

[Crunch Hardtack]

We have been asked to appraise a local home that is being donated to the local Historical Society. A previous MAI told the Historical Society that he could not do it because it requires a special certification. The only reason it is historical is the age 1727, George never slept there. Do you know anyting about a requirement for historical certification.

If the house is not in a historic district or not otherwise historically significant you still may have issues. I used to live in an old house located in a historic district and the restrictions were horrendous.

You also have structural issues. When that house was originally constructed, there was probably not a nail in it thanks to the carpenters and joiners of the era. If it's had any significant remodeling/alteration get a structural engineering cert.

For expert advice on old (pre-1800) properties contact the Association for the Preservation of Virginia Antiquities. Their website is www.apva.org. You can also contact Colonial Williamsburg. Detailed information on the reconstruction which was started in the 1930's is still available.

 

[Couch Potato]

We have been asked to appraise a local home that is being donated to the local Historical Society. A previous MAI told the Historical Society that he could not do it because it requires a special certification. The only reason it is historical is the age 1727, George never slept there. Do you know anyting about a requirement for historical certification.

No special "certification," but the fact that you ask indicates you may lack the necessary experience with this type of property. It is very complex; one can't just use any old sales.

Allow plenty of time for the job, and make sure your fee is sufficient.

 

[Joyce Potts]

With all due respect--the key to appraising historic is the same as appraising anything else. Sales, listings, pendings and market data of like properties. While the AI does offer a class in appraising historic properties, my recommendation is to simply buy the book. Go to the AI website or Google "appraising historic properties" or PM me and I'll give you the information for the one the AI uses for their one day seminar.

If the intended use is for lending purposes, the assignment will be more challenging because the UW will want you to provide the square peg for thee square hole and that's not always possible.

When it comes down to it, these are no more complex than any other 'complex' appraisal assignment. It all depends on the market data available.

Here's one of my favorites that I've posted before. http://www.stetsonmansion.com/

 

[Couch Potato]

I agree with you Joyce, but the fact is determining what is a "like property" can be very tricky with historic properties. Being labeled "historic" carries so many different meanings, then there are the historic properties that don't have the label. Knowing how to sort through it all takes practice. It also takes extra time and effort.

Saying it is no more complex than other complex assignments is a bit silly. Like any complex assignment it not only depends on the data available, but having the appropriate knowledge of what to do with the data.

Communicating the appraisal in a way the UW will understand probably is one of the most difficult parts.

 

[Mike Garrett RAA]

I agree with you Joyce, but the fact is determining what is a "like property" can be very tricky with historic properties. Being labeled "historic" carries so many different meanings, then there are the historic properties that don't have the label. Knowing how to sort through it all takes practice. It also takes extra time and effort.

Saying it is no more complex than other complex assignments is a bit silly. Like any complex assignment it not only depends on the data available, but having the appropriate knowledge of what to do with the data.

Communicating the appraisal in a way the UW will understand probably is one of the most difficult parts.

Intended use in this case probably isn't for mortgage lending purposes or did I read that incorrectly?

 

[Couch Potato]

Intended use in this case probably isn't for mortgage lending purposes or did I read that incorrectly?

You are correct. My reference to UW was in regards to historic properties in general. Obviously it does not apply in this instance.

 

[Kali the Boston Terrier]

Proceed with caution...thanks TE. Are they planning on donating the house and getting a write off? If so IRS regulations will have to be used, which are very similar to conservation easements and will likely mean that the appraisal will be reviewed by the IRS and if the donation amount is over $500,000 then an audit is very likely...build that risk into your fee.

 

[Riick]

We have been asked to appraise a local home that is being donated to the local Historical Society. A previous MAI told the Historical Society that he could not do it because it requires a special certification. The only reason it is historical is the age 1727, George never slept there. Do you know anyting about a requirement for historical certification.

You might want to contact Bob Ludwig in Philadelphia, if you can.
He does this sort of work, and has given courses on appraising historic homes.