Outbuilding

[ChampRJ]

I'm stumped on this one. A property on 5 ac with a metal pole building (no insulation) that is 30' x 40 feet but no vehicle access. It also has no heat or electricity but is on a concrete slab. These are common in rural Minnesota but not set in the woods like this. How much value would you give it?

 

[Fernando]

Does the market give it value?

 

[ChampRJ]

This area, yes, but with access and electricity for sure. They are common and used for storage and vehicles/equipment.

 

[Fernando]

I don't know your local market but if there's a shack without permits around here, I give minimal value, maybe no value if market doesn't warrant it.

 

[Dublin ohio]

I'm stumped on this one. A property on 5 ac with a metal pole building (no insulation) that is 30' x 40 feet but no vehicle access. It also has no heat or electricity but is on a concrete slab. These are common in rural Minnesota but not set in the woods like this. How much value would you give it?

I have run into some of those quite often while researching vacant land sales. Depending on the condition, I have always found them to contribute some value

 

[J Grant]

I'm stumped on this one. A property on 5 ac with a metal pole building (no insulation) that is 30' x 40 feet but no vehicle access. It also has no heat or electricity but is on a concrete slab. These are common in rural Minnesota but not set in the woods like this. How much value would you give it?

Do a cost estimate. If it costs ( for example ) $20,000, it might be valued at 10k, or a depreciated amount at 10k. Or 5k . Idk.

Surely that type of building is common in semi rural area or area with homes on large lots...and you can cross-check sales for a cost approach relevance by getting a market extraction. Ask a few RE agents who specialize in teh area for their feedback.

 

[Tom4value]

I'm stumped on this one. A property on 5 ac with a metal pole building (no insulation) that is 30' x 40 feet but no vehicle access. It also has no heat or electricity but is on a concrete slab. These are common in rural Minnesota but not set in the woods like this. How much value would you give it?

What does the current owner use it as?

Also, what does “no vehicle access” mean? Can there be with a little work?
The fact that they are common could help you a lot if you answer those questions.

 

[Mark K]

Maybe the beginnings of a hunting cabin/shack? Add a wood burning stove and a generator hookup and you've got everything you need for deer season.

Personally, I'd just use a cost approach. Around here a 30x40, 10' sidewalls, concrete floor is about $35/sq.ft. with concrete being $7/sf of that. If built by Morton Buildings, double that. Buy a kit and DIY cost? Maybe $15-$20/sf.

Depreciation? Too many variables to guess w/out knowing the area.

 

[Terrel L. Shields]

Cost related adjustment. Find out how old and how much it cost when built. Say it is 2018 built. The owner says he built it for $17/SF. Go to historical multiplier table in NBC or M-Swift. It might say 1.24 so, RCN is 1.24 x 17. It is probably fair-average quality. Total life probably 40-45. Age is 7, so physical depreciation is say 33/40, roughly 20% depreciation. Unless you can justify a functional problem with other sales, then that is the answer. No one can prove it wrong. You only have to SUPPORT your adjustment, not PROVE IT IS 100% CORRECT.

 

[shrubberyvaluation]

I'm stumped on this one. A property on 5 ac with a metal pole building (no insulation) that is 30' x 40 feet but no vehicle access. It also has no heat or electricity but is on a concrete slab. These are common in rural Minnesota but not set in the woods like this. How much value would you give it?

I'd give it no value, I can't give value to anything. I'd look at the market. Are there prior sales of the subject that include the building?