• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Newbie needs answer to how to determine Effective Age

Status
Not open for further replies.

KJR2008

Junior Member
Joined
Jun 3, 2008
Professional Status
Certified Residential Appraiser
State
Texas
Having a little trouble trying to grasp exactly how effective age of a property is determined, I understand the book definition of effective age, guess what I am looking for is what factors should I be looking for when doing a property inspection that will indicate an appropriate effective age. I understand that effective age is subjective, Am I right in my thinking that when determining effective age, using 5 year increments (ie a 35yr old property) is acceptable, and trying to determine the CORRECT effective age to the year is futile if not impossible. Unfortunately I am without a sponsor at the present time to get this information from.
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
effective age
The age of property that is based on the amount of observed deterioration and obsolescence it has sustained, which may be different from its chronological age. (USPAP, 2002 ed.)


The Market Extraction method of determining effective age is considered the best way to determine effective age. It is pretty long to explain. Look at page 389 of The Appraisal of Real Estate, 12th Edition, your mentor should have that book. If they don't then buy him/her one for Christmas and buy one for yourself too.

Other folks use the "observed method". Basically pulling out of the air.

----------------------------------------------

Oops, forgot you had no mentor....get the book. It is very possible to determine effective age if you want to spend the time to do it.
 

Wm. Hattaway

Senior Member
Joined
Mar 18, 2006
Professional Status
Certified Residential Appraiser
State
Florida
Be careful if you try to use effective age adjustments on your comps. I sat in on a state appraisal board disciplinary hearing. The chairwomen hammered the appraiser for using effective age adjustments between the comps and the subject. She agreed to the effective age of the subject but without an interior inspection of the comps she would not accept his argument for the adjustment based on what he has seen from the street.
 

shammo1

Freshman Member
Joined
Nov 19, 2007
Professional Status
Certified Residential Appraiser
State
Washington
I agree with Wm. Hataway, first off effective age is an opinion..nothing more. I am sure if we all think about it we would all or most would agree that effective age is directly in sync with condition. Personally I dont even measure effective age in the sales grid. I make adjustments for differecens in condition only...and this is done after careful review of MLS photos and other available data..along with my exterior inspection of the comparable property.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks