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Please help im stuck COST APPROACH TO VALUE (not required by Fannie Mae) Provide adeguate infomation for the lendericlient to replicate the below cost figures
Please help im stuck COST APPROACH TO VALUE (not required by Fannie Mae) Provide adeguate infomation for the lendericlient to replicate the below cost figures and calculations. Support for the opition of site value (summary of comparable land sales or other methods for estimsating site value) The subject property is a rectangle, 75 feet wide and 35 feet deep. There is a center front entrance but no front porch. There is a rear sliding glass door to the left of the house, opening onto a deck that is 25 feet wide by 18 feet deep. The built-in garage is 26 feet by 26 feet. The energy-efficient items on the property are the same as those enjoyed by other homes in the neighborhood-well-insulated walls, ceilings, and floors. There are no special energy-efficient fixtures. The appraiser gathered current costs from local contractors actively engaged in building similar houses in the area. These costs were then compared to known costs published by current cost manuals. Cost estimates are based on $112 per square foot for residential construction of this quality, \$20 per square foot for decking, and $30 per square foot for the garage . The subject property is 22 years old and in good overall condition. Depreciation due to physical deterioration is estimated at 20% and is based on the effective age of the house in relation to other houses in the area. There is no evidence of functional or external obsolescence. Site value, including all amenities commonly found in comparable sites (such as underground utilities, storm and sanitary sewers, and concrete curbs and gutters) is estimated by analysis of comparable properties at $98,000. The value "as is" of site improvements not considered in any other category (such as the driveway and landscaping) is estimated to be $12,000
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