Year built or remodeled year

[KJR2008]

Appraising a property that was built in 1940, home was remodeled in 1985, have a total of about 9 sales in the past 6 months, half or between 1933-1945 and the others are around 1985 would it be o.k to use sales in 1985 as comparables?

 

[ipari21]

Why not !
Recent built home could be use for the comparables with effective age.
First of all, make a decision that the subject's effective age, then adjust all comps including old homes.

wish to help you..

 

[Paul Isolda]

How would the typical buyer of that type of property in that area look at it? Would they consider them as reasonable substitutes? What you should use as comparables are what you consider to be the best data available to you and that no one can go out after you do your appraisal and find better comparables then you used.

 

[Craig Farr]

Here we go again.....the "Effective Age" nonsense. Subject built in 1940 in a neighborhood of houses built in 1940. Subject has a lot of new 'stuff' and "is just like a house built in 1985". So it is logical to go five, fifteen miles to a neighborhood built in 1985 for comparables.

Utter nonsense. When we find the person who started that silliness we will find a person who never bought a home!

Stay in the subject's neighborhood and lose "Effective Age". You have a 68-yr-old residence in excellent, updated, upgraded? condition. Find comparables in that neighborhood of similar condition. If there are none, you now have an over-improvement issue that must be addressed, but you will still use comps from the neighborhood. It is now a more complex appraisal, but you can't find a solution by venturing for "comps". You'll only find trouble.

 

[Mike Kennedy]

define "remodeled".

 

[PropertyEconomics]

Why not use similar houses from the 1940s which have been remodeled?

If that does not work for you ... use 3 from the same age period of construction as your subject, use 3 from the same period of renovation as your subject .... and then take a very hard look at any value differences to determine if they are age or condition .....

 

[Metamorphic]

Why not use similar houses from the 1940s which have been remodeled?

If that does not work for you ... use 3 from the same age period of construction as your subject, use 3 from the same period of renovation as your subject .... and then take a very hard look at any value differences to determine if they are age or condition .....

That gets my vote.

If you dont KNOW what the market for this house is, analyze the market and let it tell you what the germane marketing elements are.

 

[Mary Tiernan]

Let's see house built in 1930s, typically small rooms, many dividers. Small closets. Small bath areas. No master bath. Basements are not useable for anything but storage.

House built in 1985 - typicall a 1 story. Larger rooms, larger closets. Typically a master bath area and larger bath area. Basement areas can be finished into additional living area.

How much remodeling have they done? Did they strip the house to the studs with new mechanicals, new room placement, etc? Or did they put in new floor coverings, new cupboards, new countertops?

I typically use a combination of age, but then I don't usually end up with 9 sales in the past 6 months. I don't really use effective age as an adjustment, but do consider condition a predominant value indicator. When a large difference in age exists, i.e., 20-30 year old versus 90 year old, I do make age adjustments, I start with $100 per year and go up after I see what the market seems to be saying . . .

 

[AnonApprsr]

I have very rarely used age AND condition. In fact, I'd say that's double dipping from the pool of adjustments.

 

[PropertyEconomics]

I have very rarely used age AND condition. In fact, I'd say that's double dipping from the pool of adjustments.

Anon .. I would say unless you have a tremendous amount of data, whereby you could measure the effects of age separately from condition, that you are right. I believe you can pick one or the other to adjust for and it is most likely a combination of the two in actuality. I think I would explain it that way. The market does probably not differentiate between the two in a 60 year old remodeled home as it is some combination of both.