How to determine effective age?

[CANative]

Effective age is an opinion. It's based on the appraiser's judgment and interpretation of market perception.

Does the structure look and function more like the 60 year old buildings in the market or more like the 30 year old or more like the 5 or 10 year old buildings? What would most buyers of this building think about it.

Express the effective age as a range because there is no precise way to calculate it.

 

[Fred]

What would most buyers of this building think about it.

In terms of age: remaining life, cost to cure defects and cost of maintenance.

 

[CANative]

In terms of age: remaining life, cost to cure defects and cost of maintenance.

Maybe. But after they couldn't figure out the "effective age" they would think:

Raggedy old beater that will cost me a fortune.

Hey, this thing is like new!

Mehh. Whatever.

 

[Fred]

Maybe. But after they couldn't figure out the "effective age" they would think:

Raggedy old beater that will cost me a fortune.

Hey, this thing is like new!

Mehh. Whatever.

That's what I said.

 

[Tim The Enchanter]

Exactly. It's totally objective.
I get the effective age from my crystal ball. :laugh::laugh:

This number means nothing.

 

[Ross (CO)]

Gina,......The Eff. Age is not a calculated expression of amount of total depreciation, per se, and it appears on Page 1 in close association with Actual Age. It is uniquely one of those few fields where one gets to express a gut-feeling opinion on the relative "look" of the home's age with that direct reflection upon how many total years it has been there on that site.

If you left that field blank......how would doing so have any real negative impact on your ability to complete all of the other sections and fields in the report and come up with an opinion of current MV ? Right, probably not very much.

You and your friend are walking down the street. You approach another acquaintance (Mary) who you have not seen in 10 years. You exchange greetings with Mary, introduce her to your friend, and then part ways in a minute or two as you and your friend walk on down the street. Your friend says.....oh, she appears to be upbeat and in good shape. Not bad for someone who is probably 45 to 50 years of age.

Huh ?, 50 years old ?, why heck, that gal will be pusing 73 next month !......No way !.......way !, you say.

Your friend made an assessment of Effective Age. Now apply that to your subject property and since you have a duplex with specific duality of ages, updates and appearance.....you get to mention two Effective Ages, perhaps. No one can really tell you that your determination of E.A. is incorrect, but do NOT fail to offer adequate text describing condition, updated improvements and visual appeal matched with any complimentary photos for both units. Yes, it is just another opinion you are asked to offer.

 

[Em Tee]

No, he saying the weighted average is between 55 and 73, closer to 73.

He says half the building is 21.9 and the other half is 38.5. Why in the hell would he add them together? That's what makes no sense. Half of a house is updated and looks like it's 10 yrs old, the other half has no updating and looks like it's 25 yrs old. So if we follow Bernie's logic, the house has an effective age of 35 yrs?
:new_all_coholic:

 

[Fred]

He says half the building is 21.9 and the other half is 38.5. Why in the hell would he add them together? That's what makes no sense. Half of a house is updated and looks like it's 10 yrs old, the other half has no updating and looks like it's 25 yrs old. So if we follow Bernie's logic, the house has an effective age of 35 yrs?
:new_all_coholic:

I am approving or disapproving of the calculation, but first, it is not halves. That would come to 64. It is 70% (2,800/4,200) and 30% (1,400/4,200).


You do agree the average is 64?
50% of 73 is 36.5
50% of 55 is 27.5
36.5 + 27.5 = 64
right?

You add the two contributions togther in the regular average for the same he reason he added them in the weighted average.

 

[Don Clark]

I am 71 years old. My effective age is 35

Or, as a student once told me when I was teaching a CE course in Little Rock, Arkansas....."In these here parts we always use 20 years

 

[TBear]

Or, as a student once told me when I was teaching a CE course in Little Rock, Arkansas....."In these here parts we always use 20 years

What a fantastic idea! We should all come up with a nice round number that we use in every report...it would be such a timesaver!

Okay people, put down the torches and pitchforks, I was just kidding.