Outbuildings Value/adjustments

[William H3]

Would like advice how outbuildings are valued or adjustments are made for when a matched pair analysis can't be completed. With outbuildings varying so much in size, quality of materials, etc how do you come up with a adjustment.

Thank you.

 

[Terrel L. Shields]

With outbuildings varying so much in size, quality of materials, etc how do you come up with a adjustment.

Depreciated Cost New. However, since I work in your state, I've yet found an area where I couldn't find pairs. I used to teach a class on rural structures. Since you are new, your personal message feature will be disabled until a minimum of posts. So email me geoappraiser AT hotmail dot com and I will send you material from the class. I am in Siloam Springs and AALCB webste has my number and address.

Structural elements and size do impact value and over-improvement becomes a functionality issue.

 

[J Grant]

That is very kind of Terrel To offer his help.

In addition, ask and talk to are RE agents, get their feedback. Consider what other properties with similar or equivalent outbuildings have sold for, even if 5 years back, as you work and see more and more sales and prices you start to accumulate experience, a "feel" for what contributory value is . Cost new plus depreciation as mentioned is one way to measure it, though contributory value may differ even among buildings that cost the same. Relation to lot size, overall use of property and conformity to neighborhood and typical buyer demand create the market acceptance. Days on market and whether a listing or not had price reductions speak to demand/marketability of a feature.

 

[Terrel L. Shields]

I'm on wrong computer today but see your email, probably this afternoon

 

[Mark K]

Terrel's advice is good and especially agree with the oversize and over-improvement aspect.

A 2,000 s.f. outbuilding with concrete, heat, insulation, elec., water, and 14' sidewalls...located behind a 1,000 s.f. house that's worth $100K isn't worth much more than a detached 2-car gar in this area.

 

[Elliott]

I start with Nickle Ads to estimate the cost of outbuildings. Cost new is heavily discounted, based on making residual estimates of prior sales. UW really don't like big money on "shop" buildings, especially if you don't have comps with similar buildings.

 

[Walter Kirk]

As with most appraisal questions" it all depends". Certainly substantial outbuildings must be considered however their size, style and quality as well as utility are factors. In my market area most outbuildings are garden sheds, some quite ornate. Since these sheds are not on proper foundations and/or were not built with permits they are commonly called personal property.

 

[Terrel L. Shields]

are commonly called personal property

These are not personal property The frame of the one pix ended up as a $70,000 building

 

[Mark K]

Since these sheds are not on proper foundations and/or were not built with permits they are commonly called personal property.

Agree up to a certain size. Anything less than about 12' x 14' and on runners, the typical yard/mini-barn, is personal property to me.

Reason is that I've seen too many on trailers heading down the road. A local guy specializes in moving them and will pick up and deliver a shed for about $250.

 

[Tim The Enchanter]

Big steel I beams don't stay personal property for long I guess.
The red barn one is pretty styling.