Deferred Maintenance and Fair Value Estimate

[SK in CV]

[quote=svelte][quote=duncbdunc]
re stucco: I understand that you are not supposed to paint over stucco. If you want to refresh color you need to apply a new layer of stucco. Apparently stucco is supposed to breath or it will rot inside from water damage. Paint seals the stucco.
[/quote]

I’ve known many people who have had their stucco painted with no ill effects. One family has had their house 20 years now since it was painted without a problem inside or out. Maybe in moister climates it would be a problem (like Seattle) or maybe if you are just blocks from the ocean. Otherwise I think you’re fine.[/quote]

Stucco is not water-proof. It is not designed to be. Neither is standard paint. The water-proofing comes from the paper, when properly applied. Stucco assemblies with a color coat are not designed to be painted, however painting won’t damage the integrity of the assembly.

Stucco is often painted with elastomeric paint (including sometimes for new contruction), which is water resistent, but usually vapor permeable. (Most of the non-vapor permeable elastomerics are off the market, but there still are some available.) It can even be used to effectively fill small cracks. It’s important to follow manufacturers application instructions.

The rotting (or more commonly, mold) is a problem when there is moisture in the studs from improper water-proofing. It is possible that a combination of improper waterproofing, along with bad timing of the application of a non-vapor permeable coating can lead to mold. Mold needs moisture and organic material to grow. If the assembly is water-proof and it can “breath” (vapor permeable) any moisture will evaporate, and there won’t be mold damage.

[sreeb]

I think you are factoring in way too much work.

Absent faulty installation or materials, a tile roof should last indefinitely. If you do develop a leak, it should be repairable without a complete roof replacement.

I don’t see why you would expect to re-stucco either.

Nor would I expect a need for a wholesale window replacement. San Diego has a very mild climate so economics do not dictate a need for high efficiency windows. You might want to replace a couple of windows or sliding doors that have seen heavy use.

Absent, a gross failure, pool resurfacing is purely cosmetic.

Basic builder new construction kitchens are nothing to write home about either. Unless the kitchen is literally falling apart (and I have seen some that are), the need to spend $25K refreshing it is fairly subjective.

Bathrooms are pretty much the same absent a tub failure.

I draw a distinction between “deferred maintenance” and “dated”. If the roof leaks, the stucco is falling off the walls, the windows won’t open and the doors don’t close, the pool plaster is collecting on the bottom of a pea green pool, the kitchen drawer fronts and cabinet doors are falling off, only two range burners work, the tubs are all rusting through, the original color of the floor is unclear, the furnace won’t run and the water heater drips a stream that is running out a garage door off it’s tracks, you have “deferred maintenance”.

I think most buyers have some understanding that these things will be expensive. They may have skills or relationships that allow them to cost repairs differently than you do. You might see $25K of window replacements and I might see $200 of parts and a weekends work.

If you you personally need all these things to be new, you should probably focus on new construction.

[sreeb]

I think you are factoring in way too much work.

Absent faulty installation or materials, a tile roof should last indefinitely. If you do develop a leak, it should be repairable without a complete roof replacement.

I don’t see why you would expect to re-stucco either.

Nor would I expect a need for a wholesale window replacement. San Diego has a very mild climate so economics do not dictate a need for high efficiency windows. You might want to replace a couple of windows or sliding doors that have seen heavy use.

Absent, a gross failure, pool resurfacing is purely cosmetic.

Basic builder new construction kitchens are nothing to write home about either. Unless the kitchen is literally falling apart (and I have seen some that are), the need to spend $25K refreshing it is fairly subjective.

Bathrooms are pretty much the same absent a tub failure.

I draw a distinction between “deferred maintenance” and “dated”. If the roof leaks, the stucco is falling off the walls, the windows won’t open and the doors don’t close, the pool plaster is collecting on the bottom of a pea green pool, the kitchen drawer fronts and cabinet doors are falling off, only two range burners work, the tubs are all rusting through, the original color of the floor is unclear, the furnace won’t run and the water heater drips a stream that is running out a garage door off it’s tracks, you have “deferred maintenance”.

I think most buyers have some understanding that these things will be expensive. They may have skills or relationships that allow them to cost repairs differently than you do. You might see $25K of window replacements and I might see $200 of parts and a weekends work.

If you you personally need all these things to be new, you should probably focus on new construction.

[sreeb]

I think you are factoring in way too much work.

Absent faulty installation or materials, a tile roof should last indefinitely. If you do develop a leak, it should be repairable without a complete roof replacement.

I don’t see why you would expect to re-stucco either.

Nor would I expect a need for a wholesale window replacement. San Diego has a very mild climate so economics do not dictate a need for high efficiency windows. You might want to replace a couple of windows or sliding doors that have seen heavy use.

Absent, a gross failure, pool resurfacing is purely cosmetic.

Basic builder new construction kitchens are nothing to write home about either. Unless the kitchen is literally falling apart (and I have seen some that are), the need to spend $25K refreshing it is fairly subjective.

Bathrooms are pretty much the same absent a tub failure.

I draw a distinction between “deferred maintenance” and “dated”. If the roof leaks, the stucco is falling off the walls, the windows won’t open and the doors don’t close, the pool plaster is collecting on the bottom of a pea green pool, the kitchen drawer fronts and cabinet doors are falling off, only two range burners work, the tubs are all rusting through, the original color of the floor is unclear, the furnace won’t run and the water heater drips a stream that is running out a garage door off it’s tracks, you have “deferred maintenance”.

I think most buyers have some understanding that these things will be expensive. They may have skills or relationships that allow them to cost repairs differently than you do. You might see $25K of window replacements and I might see $200 of parts and a weekends work.

If you you personally need all these things to be new, you should probably focus on new construction.

[sreeb]

I think you are factoring in way too much work.

Absent faulty installation or materials, a tile roof should last indefinitely. If you do develop a leak, it should be repairable without a complete roof replacement.

I don’t see why you would expect to re-stucco either.

Nor would I expect a need for a wholesale window replacement. San Diego has a very mild climate so economics do not dictate a need for high efficiency windows. You might want to replace a couple of windows or sliding doors that have seen heavy use.

Absent, a gross failure, pool resurfacing is purely cosmetic.

Basic builder new construction kitchens are nothing to write home about either. Unless the kitchen is literally falling apart (and I have seen some that are), the need to spend $25K refreshing it is fairly subjective.

Bathrooms are pretty much the same absent a tub failure.

I draw a distinction between “deferred maintenance” and “dated”. If the roof leaks, the stucco is falling off the walls, the windows won’t open and the doors don’t close, the pool plaster is collecting on the bottom of a pea green pool, the kitchen drawer fronts and cabinet doors are falling off, only two range burners work, the tubs are all rusting through, the original color of the floor is unclear, the furnace won’t run and the water heater drips a stream that is running out a garage door off it’s tracks, you have “deferred maintenance”.

I think most buyers have some understanding that these things will be expensive. They may have skills or relationships that allow them to cost repairs differently than you do. You might see $25K of window replacements and I might see $200 of parts and a weekends work.

If you you personally need all these things to be new, you should probably focus on new construction.

[sreeb]

I think you are factoring in way too much work.

Absent faulty installation or materials, a tile roof should last indefinitely. If you do develop a leak, it should be repairable without a complete roof replacement.

I don’t see why you would expect to re-stucco either.

Nor would I expect a need for a wholesale window replacement. San Diego has a very mild climate so economics do not dictate a need for high efficiency windows. You might want to replace a couple of windows or sliding doors that have seen heavy use.

Absent, a gross failure, pool resurfacing is purely cosmetic.

Basic builder new construction kitchens are nothing to write home about either. Unless the kitchen is literally falling apart (and I have seen some that are), the need to spend $25K refreshing it is fairly subjective.

Bathrooms are pretty much the same absent a tub failure.

I draw a distinction between “deferred maintenance” and “dated”. If the roof leaks, the stucco is falling off the walls, the windows won’t open and the doors don’t close, the pool plaster is collecting on the bottom of a pea green pool, the kitchen drawer fronts and cabinet doors are falling off, only two range burners work, the tubs are all rusting through, the original color of the floor is unclear, the furnace won’t run and the water heater drips a stream that is running out a garage door off it’s tracks, you have “deferred maintenance”.

I think most buyers have some understanding that these things will be expensive. They may have skills or relationships that allow them to cost repairs differently than you do. You might see $25K of window replacements and I might see $200 of parts and a weekends work.

If you you personally need all these things to be new, you should probably focus on new construction.

[duncbdunc]

Thanks everyone for the comments. I get the point some of you are making that some of these items don’t have to be immediately addressed. But the point I’m making is that something that is 20 years depreciated is worth less than something that is brand new. It does not mean I need a brand new home, I just think its prudent to price in the depreciation. The information I requested not only prevents overpaying for a dated home, but allows us to better compare the more dated homes with those that are either new or newly remodeled.

Econprof makes a good point that it does not make economic sense to replace features that have not reached the end of their useful life. While true, it also does not make economic sense to pay $50,000 for a 1999 BMW 5-series because it still is operational. Homes are depreciating assets just like cars, and should be priced as such.

[duncbdunc]

Thanks everyone for the comments. I get the point some of you are making that some of these items don’t have to be immediately addressed. But the point I’m making is that something that is 20 years depreciated is worth less than something that is brand new. It does not mean I need a brand new home, I just think its prudent to price in the depreciation. The information I requested not only prevents overpaying for a dated home, but allows us to better compare the more dated homes with those that are either new or newly remodeled.

Econprof makes a good point that it does not make economic sense to replace features that have not reached the end of their useful life. While true, it also does not make economic sense to pay $50,000 for a 1999 BMW 5-series because it still is operational. Homes are depreciating assets just like cars, and should be priced as such.

[duncbdunc]

Thanks everyone for the comments. I get the point some of you are making that some of these items don’t have to be immediately addressed. But the point I’m making is that something that is 20 years depreciated is worth less than something that is brand new. It does not mean I need a brand new home, I just think its prudent to price in the depreciation. The information I requested not only prevents overpaying for a dated home, but allows us to better compare the more dated homes with those that are either new or newly remodeled.

Econprof makes a good point that it does not make economic sense to replace features that have not reached the end of their useful life. While true, it also does not make economic sense to pay $50,000 for a 1999 BMW 5-series because it still is operational. Homes are depreciating assets just like cars, and should be priced as such.

[duncbdunc]

Thanks everyone for the comments. I get the point some of you are making that some of these items don’t have to be immediately addressed. But the point I’m making is that something that is 20 years depreciated is worth less than something that is brand new. It does not mean I need a brand new home, I just think its prudent to price in the depreciation. The information I requested not only prevents overpaying for a dated home, but allows us to better compare the more dated homes with those that are either new or newly remodeled.

Econprof makes a good point that it does not make economic sense to replace features that have not reached the end of their useful life. While true, it also does not make economic sense to pay $50,000 for a 1999 BMW 5-series because it still is operational. Homes are depreciating assets just like cars, and should be priced as such.

[duncbdunc]

Thanks everyone for the comments. I get the point some of you are making that some of these items don’t have to be immediately addressed. But the point I’m making is that something that is 20 years depreciated is worth less than something that is brand new. It does not mean I need a brand new home, I just think its prudent to price in the depreciation. The information I requested not only prevents overpaying for a dated home, but allows us to better compare the more dated homes with those that are either new or newly remodeled.

Econprof makes a good point that it does not make economic sense to replace features that have not reached the end of their useful life. While true, it also does not make economic sense to pay $50,000 for a 1999 BMW 5-series because it still is operational. Homes are depreciating assets just like cars, and should be priced as such.

[duncbdunc]

And just to be clear, I am not arguing that the home price should depreciate like cars. I just differentiate land appreciation form home depreciation. Its the land that appreciates.

[duncbdunc]

And just to be clear, I am not arguing that the home price should depreciate like cars. I just differentiate land appreciation form home depreciation. Its the land that appreciates.

[duncbdunc]

And just to be clear, I am not arguing that the home price should depreciate like cars. I just differentiate land appreciation form home depreciation. Its the land that appreciates.

[duncbdunc]

And just to be clear, I am not arguing that the home price should depreciate like cars. I just differentiate land appreciation form home depreciation. Its the land that appreciates.

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