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Mix Ages of improvement or average?

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Frank Bertrand

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Aug 21, 2002
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Certified General Appraiser
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Pennsylvania
1700 sg ft 1972 modern home, owner adding 1800 new addition. orig home to have all new wiring, walls, floors, ceilings, etc. How would you report this on the grid? I'm leaning towards all new construction, thus 0 years. thanks.
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
I would show the present total GLA in the grid with a date, say "2002 rehab," then digress in Comments or point to Comments area of addendum.

Then tell it like you told us with a little more detail and be sure to be chronologial so that your spiel ends at the modern end of the spectrum.
 

Terrel L. Shields

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May 2, 2002
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State
Arkansas
I have seen a number of these in my small town and I rarely would say zero depreciation, because most people recognize them as not new.

We had a local builder who built one home at a time buying orphan lots as he found them. Occasionally he would buy a very old house and do a full rehab on it. They never quite sell as well as new.

My blending would be to use the additive cost method and attempt to age each component. i.e. - Foundation 8%, age 30; Framing 15% age 20; roof structure 4% - age 30; roofing 2% age zero; interior age zero 25%; HVAC 5% age zero......you get the picture. You will come up with 5-10% depreciation normally. It is not fun but beats a poke in the eye.
 

Frank Bertrand

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Aug 21, 2002
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Certified General Appraiser
State
Pennsylvania
I use a rule of thumb: 3 main systems: mechanical systems, (HVAC, plumbing, electric, bath, kitchen) then external issues (roof, siding, etc.) and interior condition (walls, trim, flooring etc) and then assigned a percentage of age. Who is to argue? As long as it is logical and a definite pattern emerges, it works.
 

Mike Garrett RAA

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Jan 14, 2002
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Certified Residential Appraiser
State
Colorado
Read Marshall and Swift it covers this issue. The extended life theory seems to cover this nicely. Applying different depreciation amounts is time consuming but will lead to a more correct answer. My favorite is when they take and move an improvement placing it on a new foundation.
 

Frank Bertrand

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Junior Member
Joined
Aug 21, 2002
Professional Status
Certified General Appraiser
State
Pennsylvania
Did one like that a few weeks ago. Hospital wanted lot in town. homeowner agreed to move house across street to another lot he owned, hospital agreed to build new basement and foot the cost of the move. Plaster wasn't even cracked in the house. They made rugged homes over 120 years ago.

Doing homes >110 years old drives me nuts anyway when it comes to depreciation. Talk about a 60 year life span. Whew, When I had to do one built circa 1800 but updated over the last 200 years, you do the best you can and make sure the report is logical, like Mr. Spock would like it.
 
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