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Stables And Out Buildings

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DanWaechter

Freshman Member
Joined
Aug 26, 2002
Professional Status
Licensed Appraiser
State
California
Need some help and/or advice on an agricultural property that I just saw. I am a relative newbie with about 400 appraisals done, but this is really my first large agricultural property on 12 acres. The property has a 23 year old split level home that has not been updated in 23 years, but more importantly it has an approximate 7000 SF building that was primarily used as stables. This building has been added onto a couple times and a couple of the added rooms are in pretty bad shape. The stable in general does not look like it has been used in many many years and does not appear to be in very good shape as well, but this comes from an appraiser who primarily deals with homes in the city. So, I am not sure whether this building is truly functional and is worth much money. There is also another out building of approximately 800-1000 SF which looks like part of it was used as a chicken coop, part of it for an area to store a tractor, and part as just an eclosed shed area. Any suggestions or input is greatly appreciated as to how to determine the overall value of these outbuildings. Thanks!
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
Your just going to have to look at you market and see what they pay for outbuildings.

In my market a large stable in good condition will return about 25% of it's cost new in value. If horses are big in you area it might be more. Only way to determine accurately is matched pairs and let the market tell you.
 

ccooper

Junior Member
Joined
Mar 9, 2002
Professional Status
Certified General Appraiser
State
Missouri
ditto jeff

in my market outbuildings don't amount for anywhere near 25% of RCN. We have a lot of "sub-rural" neighborhoods with acreage tracts and barns. Typically, the buyer is purchasing the home and land primarily. We don't generally allocate much at all unless it is a fully operational poultry farm (where the farm houses are the major income producer and the residence is generally secondary to the buyer).

As Jeff said, look for matched pairs and let your market tell you.
 

hal380

Senior Member
Joined
Apr 26, 2003
Professional Status
Certified General Appraiser
State
Connecticut
Hi Dan:

but this is really my first large agricultural property on 12 acres.

This sounds like a competancy issue to me. If it were me, I would partner up with someone.

Hope this helps

Hal
 

jeanwillick

Junior Member
Joined
Jun 2, 2003
Professional Status
Licensed Appraiser
State
Michigan
We work in very rural areas in Northeast Michigan and find many times that these older outbuildings have very little value--sales indicate purchasers are more interested in house and acreage. If buildings are in poor or fair condition we use a flat value for each building and sometimes no value. You have to ask yourself, what would this property sell for with the building and how much would it sell for without that building--more than likely it would sell for the same. We have no "matched pairs" to give us a value and have to use our own judgement based on experience in this market. Study some "listings of for sale properties" and see if you can find any value for older outbuildings vs. the sold data as bringing in value for the buildings. Your assessor cards can be very useful in these situations also. Many times the assessor will "flat rate" these older barns or buildings and sometimes note as "no value". A combination of all these sources should give you some indication of what to do.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
And in my area...just the opposite. Rural properties without outbuildings, etc bring much less. Horse people need those facilities and are willing to pay for them. How much value do I give them? What ever the market is telling me! You have heard of urban myths? Well you just heard a rural myth. Could be a complex appraisal assignment!
 

Rich Hahn

Senior Member
Joined
May 2, 2003
Professional Status
General Public
State
Colorado
Sounds like minimal contributory value.

But it depends on yur market.

Good luck
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
It depends on the market, period. My area is like Mike. If it's not there, it soon will be. These buildings can return as much as 100% of cost, or more because they don't have to build them. That's because I'm in an area that is to quarterhorses as the Kentucky bluegrass area is to thoroughbreds. These dumb horses run over a $M so there are barns that cost more that most custom homes.

However, in East Texas, these things can not return much value at all if they're just old barns.

Looks like a lot of paired sales and market research.

Good luck.

Roger
 

Charlotte Dixon

Senior Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Delaware
Just did one...11 acres, big house, beautiful barn. There's no clear answer; just rely on the market. I was lucky enough to have 3 similar comps, but it still took me 1 1/2 days of broken up time to write it.
Points I covered:
Private Road
Barn is used to accomodate pleasure horses
Excess land is utilized for pasture and not to produce crops for income
Comparable sales are in short supply. However, this type of property is not considered an over-improvement, etc. etc.
Net/Gross adjustments exceeded in some cases, etc. etc.
Distance to comps not considered to be a factor, etc. etc.
and then the magnificent final touch I got from this Forum...
Any deviations from generally recognized appraisal guidelines are the result of limited sales data rather than lack of awareness of the guidelines.

It settles today. Haven't been asked any questions yet.
 

Judy Whitehead (Florida)

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Charlotte's answer is pretty much what I do....outbuildings do have some contribution in this area on homes on acreage, but similar to swimming pools, their contribution is less than cost to reproduce. If the outbuilding is in poor condition, then I would believe it has minimal contribution.
 
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