Old timber barn and appraisal

[lightboy363]

Also to add, this, 100+ years ago was farm land and a barn of that size was needed, today this is residential property and I have been advised they (the township ) may not let me build that big again, only 1.37 acres with a 2400 sf house and a 768 sf garage on it already.

 

[lightboy363]

Also to add, this, 100+ years ago was farm land and a barn of that size was needed, today this is residential property and I have been advised they (the township ) may not let me build that big again, only 1.37 acres with a 2400 sf house and a 768 sf garage on it already.

 

[CANative]

I want to build a smaller footprint pole barn that adds more value to the property and is useful to me.

What makes you think a new barn will result in a higher market value for your property? It might not.

If you built a quarter scale Empire State Building in your back yard at a cost of $50 million dollars do you think it was add $50M to your property value? Even though you might think it was just dandy who else would think so?

You said yourself that you didn't buy the property for the barn, you bought it for the house and garage. If you don't care about the barn why do you care that the mortgage company wants some of the insurance proceeds? Just tell the insurance company to keep their money. That ought to learn your lender.

 

[lightboy363]

Thought about that too.

 

[lightboy363]

First off, thanks for your input guys. Maybe I am on the wrong forum. The point I look at is a appraisal is required for a property purchase or refinance, which the buyer pays for. This is what the bank looks at to finance and if there is a barn or what ever else, like my pool that is no longer there when purchased with no value listed when the house and garage has a value listed, that tells me the bank knows what they are buying or loaning, Correct? I have been told by appraisers the barn has no value to the property and was just wondering why the bank has interest all of a sudden, yes I have been warned the banks want there share now a days of the insurance money.

 

[lightboy363]

Yes, but they are telling me to build what I had, a 100+ YO dilapidated barn. NOT happening.

 

[Tim The Enchanter]

I have been told by appraisers the barn has no value to the property

Kinda sounds that way.

and was just wondering why the bank has interest all of a sudden, yes I have been warned the banks want there share now a days of the insurance money.

Bankers can smell money miles away. So I hear.

Let the insurance pay for whatever new barn the govt will allow.
That's my thought. woohoo

 

[CANative]

You do realize I was kidding about telling the insurance company to keep their money?

If you did that and they did your lender might sue you or tack the amount onto your loan balance.

Appraisers don't "give value" or "take value." The market determines this. You're probably deciding that an appraiser did or did not "give or take" value by looking at the sales grid tables in your appraisal report. If the appraiser is of the opinion that the market will pay more for a similar property if it has an old barn versus no old barn he will make upward $ adjustments to comparable properties that don't have barns. If all the comparable sales presented in the report have a barn (or something of equal value) there will be no adjustments for your barn (appraisers adjust comparable sales to the subject property instead of adjusting the subject property to the comparables.)

For a primarily residential property on an acre I really doubt if a small, 100 year old barn like yours (1500 sf give or take) would command a higher sale price than other properties with no barn.

So, the $21,000 is a windfall, so to speak, and I don't understand why this is getting your goat.

If you want to build a better, more expensive barn you can use some of the proceeds to defray the cost.

 

[Michigan CG]

OK Jon,

I live in Michigan and appraise a lot of properties that are rural and that have barns. A barn on 1.37 acres is worthless in 95% of properties.

Think about it this way, if YOU were looking to buy a house with a garage that is EXACTLY the same as your house and you had two choices, one with the 100+ year-old barn and one with no barn how much extra would you pay for the one with NO BARN.

I am telling you that I would rather NOT have the barn for a property with 1.37 acres that is that old. A 1,600 square foot barn on a property is just a problem waiting to happen and maintaining the barn is a huge waste of money. Do you know how much it would cost to replace a roof on that thing? Painting it would be a nightmare. Who needs or wants a barn with 1.37 acres?

And yes I am building a new pole barn, just not that size as the old barn was never really usable in it's shape.

What ever money you spend on a pole barn will be more than the thing will be worth come resale. If you want a pole barn and will enjoy it fine, but don't expect it to be worth much once you have it built.

......and the last appraisal states ( Functional taken for buyer resistance to older barns), which nobody understands that statement........

I think I understand that statement......it has little functional value considering the age, condition and the land size.

Functional.....what you can use it for. Not much that an additional 2 car garage or small pole structure will satisfy.

........The problem I have is the the bank/mortgage company states they have interest on a 110+ yo barn that no value was given on a appraisal.......

The bank does have an interest as they loaned money on the property. Forget about the appraisal.

.....I am probably going to hire a lawyer and fight this to hells end....

You would be wasting your money.

If the barn is part of the real property and they hold the mortgage then of course they have an interest in all of the real property.

What the appraiser determines the contributory value of the barn to be has no bearing on this.

This guy is exactly correct.

Well, I have talked to 200+ people about this and they don't agree...........

200+ people....Really? Sounds like 200+ people who have no idea what they are talking about (I thought about using the term idiots, but didn't).

So appraisal people just have a job, they don't have to know what they are appraising? American way now a days. If I build a new pole barn of smaller footprint it would be worth a hell of a lot more than that old rikkity thing...

A 100+ YEAR-OLD BARN on 1.37 acres has NO VALUE (in almost all cases).

If you build a new pole barn on 1.37 acres it also has ALMOST NO VALUE.

.....and the insurance estimate included 2x4's and 2x6's to rebuild, that barn has TRUE 6x6's and TRUE 2x6" ( red oak at that ), not available in this area any more. The insurance estimate is way off......

Principal of substitution along with utility of a substitute structure. I could rant here but.........

Apply the insurance money to your loan and tell the bank to apply their portion to the loan. Everyone wins.

 

[CANative]

that barn has TRUE 6x6's and TRUE 2x6" ( red oak at that )

Ah, I missed that part. The bank doesn't want your old wood so it's yours to do with as you please. Build a playhouse for the kids, a deck... perhaps sell it?

http://schillersalvage.com/#/products-pricing/4565305641

$4.50 per square foot. Forty bucks a square yard. Pricier than good carpeting or engineered hardwood!