Steel Frame SFR

[John Friendly]

Ladies and Gentlemen,

I am seeking information as to the approach on appraising an Engineered Steel Frame SFR.
I did a search on this board and did not find the information.

The location is in Kern County,Ca.

Is there or does anyone know of a source for documented value comparisons to the same size SFR built of conventional Wood Frame matrials Anywhere ?

Is there an Appraiser that has Experience with this type of Appraisal ?

I can Send pictures of Framing type by E-mail on request.

Thank You For Your Time

 

[Otis Key]

John, welcome to the AF. To answer your question would take someone very familiar with your market. A general answer would be "it depends". That's because each sub-market is almost specific to itself.

We've had some areas that were developed with steel framed houses. To be honest, I have not seen any market difference between those and wood framed. However, I might ask you a question back. Would you pay any more for the difference?

Can't help you with the rest of your questions.

 

[James Moore]

Engineered steel homes are becoming fairly common in our rural areas, but they are all customs and sales are very rare. I know lenders have had a hard time getting them financed.

Last one I had, lender called the wholesaler - "no problem. We just need five sales of metal houses within a mile and within a year." Translation - we don't want the loan.

Ask your client if they know what they have before you waste a lot of time.

 

[TEL2002]

Just did one about 3 months ago. It was an REO. It was the first one I had ever seen. But I can not help you with your answers, since I could find no sales of other steel frame homes. It was about 40 years old. Seemed to be very solid, except for the rust on a post between the two garage doors.

 

[Mr Rex]

There was a real push at one time, then steel got expensive, so all the attributes, strength, lightweight, straightness, impervious to termites, etc lost the allure to the $$$. Don't think I could prove they sell for more, don't think I could prove they sell for less. Might be different in your market.

 

[John Friendly]

I think Both of your answers to my question are Good.

Let me ask you and answer that question about whether I would pay for the difference...

Every day all day, people go out and buy Cars. Some buy little and some buy big. Some buy Foriegn and Some buy American. Some pay for a Huyndai and others Pay for a Mercedes or BMW.
Is there a difference ? I believe there is, all of these are cars yet Cost and performances All Vary.
Is it not similar in the area of Residential Housing ? It sure seems obvious that Steel does Outlast and Out-Perform on most Levels compared to wood,
unless you need it to Burn !!! Are we talking about an "Opinion" of Quality Materials or an "Unquestionable" truth. Steel Framing will OutLast Wood Framing Every Time. No ?
Would you want to buy a "Wood Hull" Boat, or be inclined to "Pay More" for a "Steel Hull" vessel ?
I think Steel Wins... Just considering these examples would it not be more of a "Wise" choice to Pay for Steel verses Wood ?
Can we consider this ?
Thank You
A Perplexing Situation for Sure ...

 

[DB]

Ok ... this prompts this question .... are you looking buy a home, buy an appraisal or are you an advocate for the steel industry or the BMU?

If it is the latter, I have some questions of my own.

 

[Mr Rex]

Steel will not burn, but it will warp and twist in a fire and be useless. If there is a water leak, due to the light gauge of the steel, doesn't take much rust to lose the structural integrity of the member, steel is a better conductor, so it transfers heat and cold faster through the wall. All negatives to consider, been there done that as a contractor. Next question: What will the average buyer think about? What happens in a lightning storm. Irrational or no, market perception.

Doug was posting while I was writing, thought I was hearing a sales pitch or maybe you just got one from the homeowner, maybe.

 

[John Friendly]

Ok ... this prompts this question .... are you looking buy a home, buy an appraisal or are you an advocate for the steel industry or the BMU?

If it is the latter, I have some questions of my own.

To clarify my position :

I am a guy that is working to build this house for Speculation.

Purchased the property, Engineered Framing and Foundation plans.

So far all costs are out of pockett, lenders are unsure about the "Value" of the project.
The appraiser says currently cost of wood studs and steel are Equal !!!
Having a Major Problem with the Appraisal Value estimated from Plans and local Comps.

Next Question ?

 

[George Hatch]

I've appraised a few over the years and have yet to discern any market reaction to steel vs. wood framing. From what I've seen in my area It's invisible to the market. Maybe it should be more desirable, but so far there's no evidence I could point to and say it is more desirable.