ancillary buildings
111) Rural Appraisals & Ancillary Buildings
06/24/07
Dear Henry,
First, thank you for all your efforts to provide on-going information for those of us our here in the "trenches." You are a valuable resource.
My appraisal work, like most, covers a broad base in terms of area covered and types of residential properties. I tend to specialize in rural properties. I know that adjustments are to be market derived, however in very non-homogenous rural areas there are virtually no two properties that are alike as those found in homogenous subdivisions. I have taken to deriving some adjustments (barns,stables, other out buildings) from depreciated cost new. I explain this in my reports. Am I 'out on a limb' here? Thanks!
George "Buzz" Gunning buzg@cpros.com
Dear George,
It is certainly not easy to appraise rural properties. Putting a value on the contribution of ancillary buildings is particularly tricky. Using depreciated costs to establish the value of ancillary buildings has the potential of getting you to a very wrong value. Qualified rural appraisers should have data that indicates the value of various kinds of ancillary buildings in their market area. If you don't have this type of data, I suggest that you get help from someone who does or not do the assignment.
H2
P.S. Thanks for your kind comments about our work.
First, thank you for all your efforts to provide on-going information for those of us our here in the "trenches." You are a valuable resource.
My appraisal work, like most, covers a broad base in terms of area covered and types of residential properties. I tend to specialize in rural properties. I know that adjustments are to be market derived, however in very non-homogenous rural areas there are virtually no two properties that are alike as those found in homogenous subdivisions. I have taken to deriving some adjustments (barns,stables, other out buildings) from depreciated cost new. I explain this in my reports. Am I 'out on a limb' here? Thanks!
George "Buzz" Gunning buzg@cpros.com
Dear George,
It is certainly not easy to appraise rural properties. Putting a value on the contribution of ancillary buildings is particularly tricky. Using depreciated costs to establish the value of ancillary buildings has the potential of getting you to a very wrong value. Qualified rural appraisers should have data that indicates the value of various kinds of ancillary buildings in their market area. If you don't have this type of data, I suggest that you get help from someone who does or not do the assignment.
H2
P.S. Thanks for your kind comments about our work.