Log Home Cost Approach

[Donny Lindner]

Anyone doing the log home cost approach? Any data source? Online source? Should this approach be completed?

I have an assignment to appraise a log home on 5 acres. I have traditional built homes in the area on acreage. I have found several log homes in surrouding areas on acreage.

 

[Otis Key]

How do you know the cost approach to market value is credible? Do you know the age? Condition? Would a log home be built in today's market for your area?

 

[The Dog]

In my neck of the woods, there is four builder of log homes that gladly share costs with appraiser. Unfortunately in my area, there is a HUGE obsolescence built in to the log home market. Cost can exceed value by up to 50%. Not popular when you appraise log homes and come in way way way below cost.

And I do have pretty good costs based on the local construction of log homes.

But, for example, my father in law lives near Sisters OR (a resort style town) with lots of log homes as second dwelling for the Portland Crowd and there is no deduct for log homes construction in that area as the market likes them for second dwellings.

Just make sure you verify market value.

 

[Howard Klahr]

Here is a link to a data source you might find helpful/interesting:

Marshall & Swift Log Home Appraisal Training Guide

 

[lmichels]

Be very sure to determine what kind of log home it is. Out here we have 4 kinds with vastly different costs.

1. Log home kit - made of milled logs to all be exactly the same size, precut for easy construction. You can get the costs by calling various manufacturers around your area, or online.

2. Half log siding - Marshall and Swift and other estimators are pretty accurate here. It's a normal house with a slight modifier for the cost of coating the frame with milled 1/2 or 1/3 logs.

3. On-site harvested logs - this one is impossible to determine costs unless you're both a logger and an experience log home contractors.

4. Engleman Spruce raw logs - these are imported from Canada and come with an attached consultant that helps your contractor put them up. It's like a very very expensive kit.

I'm sure there are many other types I haven't come across yet. If you can't determine which type it is, you may not be able to complete the cost approach on it.

 

[Joyce Potts]

Anyone doing the log home cost approach? Any data source? Online source? Should this approach be completed?

I have an assignment to appraise a log home on 5 acres. I have traditional built homes in the area on acreage. I have found several log homes in surrouding areas on acreage.

My husband and I built three of them in North Carolina. Two were Tennesee Log Homes. You can e-mail me at OrlandoAppraiser@aol.com form my comments, if you like.

 

[Roger R. Patzold]

A local contractor who builds log homes similar to the one you are dealing with. Most log homes come as a package for a contractor to assemble and finish.

The cost approach has not been very reliable in my expierence.

Comparison approach is best but I have to go great distances to find suitable sales.

Around Lufkin, Texas, I understand that log homes do not draw much of a premieum.

Good luck and God bless.<><

 

[Mike Garrett RAA]

I prefer to use local contractors as my source.

 

[Ray Miller]

We have umpteen types of log homes in our area, we have more then double that amount in quality.

You got to know what you are dealing with in more ways then one. Type of wood logs and where did they come from, how were they dried and on and on and on and on.

What type of craftsmanship, Machine, hand?

M/S has a book on log homes and there are several others. Also get a hold of you local log builders.

 

[Mike Boyd]

[

4. Engleman Spruce raw logs - these are imported from Canada and come with an attached consultant that helps your contractor put them up. It's like a very very expensive kit.



How is the consultant attached? Strapped with rope around one of the logs?