The first site we analyze belongs to a wood sided, 2 bedroom home which sold 9-3-2004 for $11,000 after a 205 day market time. Its original list price was $27,000, and it had been reduced to $23,000 at the time it sold. The MLS remarks stated that it was well maintained, with updated plumbing, furnace, roof (under 6 years), and water heater. Nevertheless, it seems to have been in less than average condition. It had an enclosed front porch and was on a 45' x 108' lot.
Marshall & Swift will be the source for the cost data, which states that for this type of home, the Low Quality, Two Story Cost Tables should be used. The numbers will be rounded. The Effective Age of the homes will be estimated based on the condition comments; this home appears to have had some updating in the past 10 years so we will judge it to have had its effective age decreased by 10 years from its actual age. We have :
| YB - 1915 | Eff Age 79 | Act Age 89 |
| GLA 1300 sf | $40/sf | $52,000 |
| Bsmt 820 sf | $11/sf | $9,020 |
| Porch 66 sf | $22/sf | $1,452 |
| Cost New | $62,472 | |
| Phys Depr | 88.8% | -$55,475 |
| Depr Cost | $6,997 |
Subtracting the Depreciated Cost of the home from the open market sales price leaves $4,003 as the site value, or $0.824 per square foot of site area.
Case #2
The second case is a wood-sided, 2 bedroom home which sold 9-2-2005 for $12,000 after an 86 day market time. Its original list price was $19,900. Built in 1908, it was said to have been upgraded with a remodeled bath, newer kitchen, and freshly painted exterior. It also had an enclosed front porch. Its lot was a non-conforming parcel measuring 45' x 58'.
| YB - 1908 | Eff Age 77 | Act Age 97 |
| GLA 708 sf | $40/sf | $28,320 |
| Bsmt 448 sf | $11/sf | $4,928 |
| Porch 78 sf | $22/sf | $1,716 |
| Cost New | $34,964 | |
| Phys Depr | 79.4% | -$27,761 |
| Depr Cost | $7,203 |
Subtracting the Depreciated Cost from the sales price gives us an extracted site value of $4,797, or $1.838 per square foot. Because this site was a non-conforming parcel but was grandfathered as a buildable parcel, the value per square foot may not have significant meaning.
Case #3
The third home is one which I appraised for its sale, which closed 2-11-2004. An aluminum sided 2-bedroom home that had a newer (1 year old) roof, it needed some repairs to plaster and flooring. The sales agreement also included a $1,000 concession to the buyer, which resulted in a net sales price of $18,500, a fact not reflected in the recorded sales price. The lot measured 38' x 109', and the home had enclosed front and rear porches. The repair estimate will be included in the physical depreciation figure. Due to the re-roofing, residing, and the glass-block basement windows, the effective age was judged to be about 25 years less than the actual age.
| YB - 1913 | Eff Age 66 | Act Age 91 |
| GLA 955 sf | $43/sf | $41,065 |
| Bsmt 572 sf | $11/sf | $6,292 |
| Porches 181 sf | $22/sf | $3,982 |
| Cost New | $51,339 | |
| Phys Depr | 72.5% | -$37,220 |
| Depr Cost | $14,119 |
The extracted site value for this sale was then $4,381, or about $1.058 per square foot.
More next time.
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