REPLACEMENT COST NARRATIVE Mr. and Mrs. Landowner have asked you to list their property for sale and to help them determine an appropriate selling price. Their home is located in an undeveloped area of the county. They own just over 17 acres of wooded land, and their home is located on one corner of the property. They plan to sell only the house and two acres of land with it Their children are all grown, and the couple is left with a large house, so they plan to build a smaller house on another part of their property. Their home is shaped as shown below: two-story one-story garage It has a two-story section that measures 50' x 30' and a one-story section that measures 50'x 24. The garage, including storage area, measures 24' x 22. The house also has a screened porch on the back side that measures 18' x 20' Because the house is located in an undeveloped area with no comparable properties available, you decide to use the replacement cost method for determining an estimated hon value. Your first step is to contact several builders you know who build comparable homes in that part of the county. The Landowners also give you the name of the builder who built their home seven years ago. Based on the input you receive from these builders, you determine that the cost per square foot for comparable properties is as follows: first story second story $30 per square foot $20, per square foot. $18 per square foot $15 per square foot garage screened porch After thoroughly reviewing the property, discussing it with the owners, and reviewing your findings with your broker, you determine that the house is in sound condition but shows some signs of wear and tear. You determine that the carpet throughout the house needs to be replaced, and the cost of replacing it with comparable quality merchandise would cost $5000 installed. Most of the interior has been recently repainted, but the upstairs bedrooms and the den need to be repainted. You call contractors you have worked with in the past and determine that the repainting will cost about $1800. Finally, the hot water heater has been leaking and needs to be replaced. A comparable model now sells for $500. Otherwise, there has been no significant change in the area around the property that would affect its value. The only change is that several parcels of land have been sold recently that ranged in size from 10 to 20 acres. You are able to use these sales to determine that the land is now worth about $2500 per acre. lovd vo REPLACEMENT COST NARRATIVE Mr. and Mrs. Landowner have asked you to list their property for sale and to help them determine an appropriate selling price. Their home is located in an undeveloped area of the county. They own just over 17 acres of wooded land, and their home is located on one corner of the property. They plan to sell only the house and two acres of land with it Their children are all grown, and the couple is left with a large house, so they plan to build a smaller house on another part of their property. Their home is shaped as shown below: two-story one-story garage It has a two-story section that measures 50' x 30' and a one-story section that measures 50'x 24. The garage, including storage area, measures 24' x 22. The house also has a screened porch on the back side that measures 18' x 20' Because the house is located in an undeveloped area with no comparable properties available, you decide to use the replacement cost method for determining an estimated hon value. Your first step is to contact several builders you know who build comparable homes in that part of the county. The Landowners also give you the name of the builder who built their home seven years ago. Based on the input you receive from these builders, you determine that the cost per square foot for comparable properties is as follows: first story second story $30 per square foot $20, per square foot. $18 per square foot $15 per square foot garage screened porch After thoroughly reviewing the property, discussing it with the owners, and reviewing your findings with your broker, you determine that the house is in sound condition but shows some signs of wear and tear. You determine that the carpet throughout the house needs to be replaced, and the cost of replacing it with comparable quality merchandise would cost $5000 installed. Most of the interior has been recently repainted, but the upstairs bedrooms and the den need to be repainted. You call contractors you have worked with in the past and determine that the repainting will cost about $1800. Finally, the hot water heater has been leaking and needs to be replaced. A comparable model now sells for $500. Otherwise, there has been no significant change in the area around the property that would affect its value. The only change is that several parcels of land have been sold recently that ranged in size from 10 to 20 acres. You are able to use these sales to determine that the land is now worth about $2500 per acre. lovd vo