Real EstateAppraisal Contributory Value of Residential Dwelling Improvement Located at 6 North Shore Way Town of Stonington, CT - stonington-ct.gov
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Silverstein Appraisal
326 State Street, Suite 208
New London, CT 06320
Phone ◊ 860-443-8405
Services, LLC Fax ◊ 860-442-9306
http://www.msac.com
Real Estate Appraisal
Contributory Value of Residential Dwelling
Improvement Located at
6 North Shore Way
Town of Stonington, CT
_________________________________________________________________________
Client – James and Elizabeth Luchars
Date of Inspection and Valuation – September 23, 2020
Publication Date – October 2, 2020
Silverstein Appraisal Services, LLC
October 2, 2020
James & Elizabeth Luchars
41 Westminster Road
Newton Center, MA 02459-2335
Re: Contributory Value of Single Family Dwelling located at
6 North Shore Way, Town of Stonington, CT
Property of Mr. & Mrs. Luchars
Dear Mr. and Mrs. Luchars:
At your request, the above captioned building has been examined for the purpose of forming
an opinion of its contributory market value as of September 23, 2020, the date of inspection.
This report is intended to comply with the reporting requirements set forth under the Uniform
Standards of Professional Appraisal Practice (USPAP) for a written appraisal report.
Supporting documentation is retained in our file. The depth of discussion contained in this
report is specific to the needs of our client and for the intended use stated below.
This appraisal is intended to be used exclusively by Mr. and Mrs. Luchars for the sole
purpose of planning a renovation of the building in conformity with regulatory requirements
related to renovating a building within a FEMA Special Flood Hazard Area. The regulations
require that the more stringent building requirements be used if the proposed cost is 50% or
more of the current contributory value. This report will be presented by Mr. and Mrs.
Luchars to the appropriate town officials as part of the application for a building permit. No
other users or uses are intended or authorized.
The scope of work for this assignment included an inspection of the existing building and a
review of the public records.
The owners of record are James Y. and Elizabeth O. Luchars. Title was acquired from Gay
E. Shanahan on September 14, 2001 for the price of $355,520, as recorded in Volume 471,
Page 1077 of the Stonington land records. The property has been in the same ownership
since then, and has not been listed for sale. It is currently assessed by the town for $382,100,
based on an appraised value of $545,800 as of the date of the last town-wide revaluation on
October 1, 2017. The town’s assessed value of the house is $75,500, based on an appraised
value of $75,500.
The property consists of a 0.35 acre waterfront site on the north side of North Shore Way
which is improved with a circa 1958, 1.50 story wood frame, seasonal single family residence
that is of fair quality and design, and is in good condition. The residence contains 4 rooms, 2
bedrooms and 1 bath within 982 sq. ft. of gross living area, on a crawl space. Additional
features include one stone fireplace, a 208 sq. ft. wood deck with built-in benches, and a 182
Real Property 326 State Street, Suite 208 Robert H. Silverstein
Valuation New London, CT 06320 MAI, SRA, MBA
And Consulting Tel. 860-443-8405 Fax 860-442-9306 roberts@msac.com
James & Elizabeth Luchars October 2, 2020 Page 2 sq. ft. screened-in porch. General exterior construction consists of a stone foundation and concrete block piers, wood shingle siding with vinyl double hung windows, and an asphalt shingled roof. There are ceramic tile floors in the entry, kitchen and bathroom, and carpet in the bedrooms, stairs, and living room/dining area. The living room has a partial vaulted ceiling with two skylights and a stone fireplace. There are exposed beams in the kitchen/living room and dining area. The kitchen features Corian countertops, stainless steel appliances to include a gas range, refrigerator and dishwasher, and an island with butcher block countertop and breakfast bar. The laundry area is located in a closet in the first floor bedroom. The second floor bedroom has some sloping ceilings. The bathroom is located on the first floor and features a marble vanity top, a fiberglass shower and a shiplap ceiling. The subject is a seasonal home but is heated via electric baseboards. There is an enclosed outdoor shower on the side of the house. Per the owners, the following improvements were made in the past 2-3 years: new screen panels on porch, new electric baseboard heat, new roof, new wood shingles, new ceilings in upstairs bedroom and bathroom; new bathroom, new kitchen, new flooring throughout, updated appliances, new front door and back storm door, new windows on the first floor except on the north side (water side) and a new outdoor shower. The subject is in good condition. There is a discrepancy between the dimensions on the assessor’s field card and our on-site measurements taken at the time of the inspection. The difference is on the 2nd floor, which the assessor’s field card indicates as having 150 sq. ft. of living area and our measurements indicate 250 sq. ft., which takes into account the slanted ceilings. Our on-site measurements are accurate and are relied upon for purposes of this valuation. The Cost Approach is developed by deducting accrued depreciation from the estimated replacement cost. The analysis is attached to this letter on page 17. The estimate of replacement cost new was developed by use of the Marshall & Swift Residential Cost Handbook, a national cost service published by Corelogic which we have found to provide accurate building cost estimates. The building was priced as a fair/average quality frame single family residence, with adjustments made to the base cost using applicable unit and lump sum costs and multipliers from the Manual. The estimate of replacement cost new is $125,641 or $127.94 per sq. ft. of gross living area, to include all hard and soft costs. This estimate does not include costs for the additional requirements needed to comply with new construction in the SFHA. Accrued depreciation is deducted from the cost new to arrive at an estimate of depreciated cost (contributory value). Depreciation is deducted for physical, functional and external factors. In this instance, there are no sources of external obsolescence (loss in value due to factors from beyond the borders of the property itself). Depreciation is noted for the condition and functional utility of the building as compared to new construction. This depreciation is estimated using the age-life method, which considers the effective age of the building as a percentage of its total economic life. The building is in good condition. The economic life of this building is estimated at 75 years and the effective age is estimated at 15 years, indicating an accrued depreciation of 20% (15/75 years).
James & Elizabeth Luchars
October 2, 2020
Page 3
The resulting depreciated cost of the building (rounded) is $100,500.
The cost approach is entirely relied upon, and it is therefore our opinion that the contributory
market value of the residential dwelling at 6 North Shore Way, as of September 23, 2020,
was:
One Hundred Thousand Five Hundred Dollars
$100,500
Market value assumes a reasonable time is allowed for exposure in the open market. Our
value estimate assumes that such time has just expired; that on the date of valuation a
reasonable time has been spent marketing the property and that a transfer has occurred on the
valuation date. Considering the location and current market conditions, our estimate of
marketing time is about two to four months.
Respectfully submitted,
Robert H. Silverstein, MAI, SRA Marina R. Bogart
CT General Certification RCG.0000565 CT Residential Certification RCR. 0001079
Expiration 4/30/2021 Expiration 4/30/2021
List of Attachments is on the following page.
Attachments:
Certification of Appraisers
Underlying Assumptions and Limiting Conditions
Appraiser State Certificates
Town Assessor Building Outline
Floor Plan and Measurements taken by Appraisers
Photographs of Appraised Property
Cost Approach
Appraiser Qualifications
CERTIFICATION OF THE APPRAISERS
I hereby certify that, to the best of my knowledge and belief:
1. The statements of fact contained in this report are true and correct.
2. The reported analyses, opinions, and conclusions are limited only by the reported
assumptions and limiting conditions and are my personal, impartial, and unbiased
professional analyses, opinions, and conclusions.
3. I have no present or prospective interest in the property that is the subject of this report and
no personal interest with respect to the parties involved.
4. I have no bias with respect to the property which is the subject of this report or to the parties
involved with this assignment.
5. My engagement in this assignment was not contingent upon developing or reporting
predetermined results.
6. My compensation for completing this assignment is not contingent upon reporting of a
predetermined value or direction in value that favors the cause of the client, the amount of the
value opinion, the attainment of a stipulated result, or the occurrence of a subsequent event
directly related to the intended use of this appraisal.
7. The appraisal was made and the appraisal report was prepared in conformity with the
requirements of the Code of Professional Ethics & Standards of Professional Appraisal
Practice of the Appraisal Institute, which include the Appraisal Foundation’s Uniform
Standards of Professional Appraisal Practice.
8. The use of this report is subject to the requirements of the Appraisal Institute relating to
review by its duly authorized representatives.
9. Marina Bogart made a personal inspection of the property that is the subject of this report on
the date of valuation.
10. No one provided significant real property appraisal assistance to the person signing this
certification.
11. As of the date of this report, Robert Silverstein has completed the requirements under the
continuing education program of the Appraisal Institute.
12. I have not provided a prior service related to the appraised property in the three years
immediately preceding acceptance of this assignment.
Robert H. Silverstein, MAI, SRA Marina R. Bogart
CT General Certification RCG.0000565 CT General Certification RCR. 0001079
Expiration 4/30/2021 Expiration 4/30/2021
Page 4
UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS
The certification of the Appraiser appearing in the appraisal report is subject to the
following conditions and to such other specific and limiting conditions, as are set
forth by the Appraiser, in the report.
1. The Appraiser assumes no responsibility for matters of a legal nature
affecting the property appraised or the title thereto, nor does the Appraiser
render any opinion as to the title, which is assumed to be good and
marketable. The property is appraised as though under responsible
ownership.
2. Any sketch in the report may show approximate dimensions and is included
to assist the reader in visualizing the property. The Appraiser has made no
survey of the property.
3. The Appraiser is not required to give testimony or appear in court because of
having made the appraisal with reference to the property in question, unless
arrangements have been previously made therefore.
4. Any distribution of the valuation in the report between land and
improvements applies only under the existing program of utilization. The
separate valuations for land and building must not be used in conjunction
with any other appraisal and are invalid if so used.
5. The Appraiser assumes that there are no hidden or unapparent conditions of
the property, subsoil or structures, which would render it more or less
valuable. The Appraiser assumes no responsibility for such conditions, or for
engineering which might be required to discover such factors.
6. Information, estimates, and opinions furnished to the Appraiser were
obtained from sources considered to be reliable and believed to be true and
correct. However, no responsibility for accuracy of such items furnished the
Appraiser can be assumed by the Appraiser.
7. Disclosure of the contents of the appraisal report is governed by the Bylaws
and Regulations of the professional appraisal organizations with which the
Appraiser is affiliated.
8. Neither all, nor any part of the contents of the report, or copy thereof
(including conclusions as to the property value, the identity of the Appraiser,
professional designations, reference to any professional appraisal
organization, or the firm with which the Appraiser is connected), shall be
used for any purposes by anyone but the client specified in the report, the
mortgagee or its successors and assigns, mortgage insurers, consultants,
professional appraisal organizations, any state or federally approved financial
institution, any department, agency, or instrumentality of the United States or
any state or the District of Columbia, without the previous written consent of
the Appraiser; nor shall it be conveyed by anyone to the public through
Page 5
UNDERLYING ASSUMPTIONS AND LIMITING CONDITIONS
advertising, public relations, news, sales, or other media, without the written
consent and approval of the Appraiser.
9. On all appraisals, subject to satisfactory completion, repairs, or alterations,
the appraisal report and value conclusions are contingent upon completion of
the improvements in a workmanlike manner.
10. Unless otherwise stated in this report, the existence of hazardous substances,
including without limitation lead paint, asbestos, polychlorinated biphenyls,
petroleum leakage, or agricultural chemicals, which may or may not be
present on, emanating from, or near the property, or other environmental
conditions, were not called to the attention of nor did the appraiser become
aware of such during the appraiser's inspection. The appraiser has no
knowledge of the existence of such materials on or in the property unless
otherwise stated. The appraiser, however, is not qualified to detect nor test
such substances or conditions. If the presence of such substances, such as
asbestos, urea formaldehyde foam insulation, or other hazardous substances
or environmental conditions, may affect the value of the property, the value
estimated is predicated on the assumption that there is not now or ever has
been such condition on or in the property or in such proximity thereto that it
would cause a loss in value. No responsibility is assumed for any such
conditions, nor for any expertise or engineering knowledge required to
discover them.
11. The Americans with Disabilities Act ("ADA") became effective January 26,
1992. We have not made a specific compliance survey and analysis of this
property to determine whether or not it is in conformity with the various
detailed requirements of the ADA. It is possible that a compliance survey of
the property, together with a detailed analysis of the requirements of the
ADA, could reveal that the property is not in compliance with one or more of
the requirements of the Act. If so, this fact could have a negative effect upon
the value of the property. Since we have no direct evidence relating to this
issue, we did not consider possible non-compliance with the requirements of
ADA in estimating the value of the property.
Page 6
APPRAISER STATE CERTIFICATES Page 7
BUILDING SKETCH (FROM ASSESSOR PROPERTY RECORD CARD) Page 8
FLOOR PLAN -ON-SITE MEASUREMENTS Page 9
PHOTOGRAPHS OF SUBJECT PROPERTY Front View Rear View Page 10
PHOTOGRAPHS OF SUBJECT PROPERTY Outdoor Shower Deck Page 11
PHOTOGRAPHS OF SUBJECT PROPERTY Concrete Pier Foundation Living Room- Dining Area Page 12
PHOTOGRAPHS OF SUBJECT PROPERTY Kitchen First Floor Bedroom Page 13
PHOTOGRAPHS OF SUBJECT PROPERTY Laundry Area in Bedroom 1 Bathroom Page 14
PHOTOGRAPHS OF SUBJECT PROPERTY Second floor Bedroom Hot Water Heater in Bathroom Page 15
PHOTOGRAPHS OF SUBJECT PROPERTY Electrical Panel Page 16
THE COST APPROACH Page 17
QUALIFICATIONS OF THE APPRAISERS
Robert H. Silverstein, MAI, SRA
Professional Memberships and Licenses
Member, Appraisal Institute: MAI and SRA designations
Connecticut General Appraiser Certification No. RCG.0000565, expires 4/30/2021
New York General Certification No. 46000013732, expires 3/1/2021
Connecticut Real Estate Broker’s License No. REB.0754660, expires 3/31/2021
Realtor Member: Eastern CT Association of Realtors
Revaluation Supervisor, Conn. Office of Policy & Management, #791, expires 4/30/2021
General Education
MBA and BA, University of Connecticut
Real Estate Experience
Full-time appraiser with Silverstein Agency 1975-1981
Partner, Miner & Silverstein, LLP, 1981-2012
Owner, Silverstein Appraisal Services, LLC, 2013 (successor to Miner & Silverstein,
LLP)
Property Types Appraised
Completed over 5,000 written appraisals throughout Connecticut, Rhode Island, and
Fisher’s Island, New York, on most types of residential, commercial, industrial and
special purpose real estate; plus participated in over 15,000 assignments as supervising or
co-appraiser.
Court Experience
Appeared and testified as an expert witness in Superior Court, States of Connecticut and
New York, and United States Bankruptcy and Federal Court.
Teaching Experience
Instructor of Real Estate Appraisal I (Residential Property) and II (Income Property),
University of Connecticut, Non-Credit Extension, 1981 to 1992.
Special Assignments
Partial takings; Taking of development rights; Leased fee and leasehold interests; Highest
and Best Use analysis; Lease-Purchase analysis; Market value subject to limited
marketing time; Investment Analysis; Before tax and after tax analysis; Condominium
Conversion Feasibility; Shopping Center Feasibility; Hotel Feasibility; Neighborhood
Impact Studies; Valuation of Small Businesses; Valuation of Partial Interests; Valuation
of Contaminated Property; Minority Interest Valuation; Liquidation Value; Going
Concern Value; Review Appraisal.
Page 18QUALIFICATIONS OF THE APPRAISERS
Real Estate Courses
Real Estate Principles and Practices, Connecticut Association of Realtors.
Real Estate Financing, University of Connecticut Extension
Building Cost Estimating, University of Connecticut Extension
Introduction to Real Property Appraising, Society of Real Estate Appraisers, (101)
Principles of Income Property Appraising, Society of Real Estate Appraisers, (201)
Applied Income Property Valuation, Society of Real Estate Appraisers, (202)
Single Family Appraisal, American Institute of Real Estate Appraisers (AIREA) Course 8
Case Studies in Real Estate Valuation, AIREA, Course 2-1
Valuation Analysis and Report Writing, AIREA, Course 2-2
Standards of Professional Practice, AIREA Course 2-3
Litigation Valuation, AIREA, Course 4
Real Estate Finance and Investment, University of Connecticut MBA Program
Introduction to Urban Land Economics, University of Connecticut MBA Program
Special Topics in Real Estate Finance and Investment, U. of Conn MBA Program
Fundamentals of Real Estate Investment and Taxation, Course 101, RNMI
National USPAP Update Course, Appraisal Institute, Course 400
Separating Real and Personal Property from Intangible Business Assets, AI Course 800
Partial List of Seminars Attended
Appraising Apartments; Appraising Condominiums; Valuations of Leases and Leasehold
Interests; Applications of Market Extractions; Narrative Report Writing; Tax
Considerations in Real Estate Transactions; Feasibility and Investment Analysis;
Marketability and Market Analysis; Marshall Valuation Cost Service; Condominium
Development and Conversion; Business Valuation I and II; Appraisal of Nursing
Facilities; Hotel/Motel Valuation; Rates, Ratios and Reasonableness; Appraising
Troubled Properties; How to Appraise FHA Property; Depreciation Analysis; Attacking
and Defending an Appraisal in Litigation; Introduction to ARGUS; Review Appraisal
Under USPAP; Valuing Mid-Size and Smaller Businesses; Subdivision Analysis;
Standards of Professional Practice, Parts A, B & C; Fair Housing; Regression Analysis-
Concepts and Applications; Feasibility Analysis, Market Value and Investment Timing;
Supporting Capitalization Rates; Appraising Convenience Stores; Partial Interest
Valuation- Undivided; Self Storage Economics and Appraisal; Introduction to the
Appraisal of Green Buildings; Analyzing Properties in Distressed Real Estate Markets;
Appraisal Curriculum Overview; USPAP 7 Hour Update; CT Law Update; Marketability
Studies; Eminent Domain and Condemnation; Uniform Appraisal Standards for Federal
Land Acquisitions (The Yellow Book)-Practical Applications.
Association Memberships
Member: Beta Gamma Sigma, National Honorary Business Society
Member: Rotary Club of New London
Board of Directors: United Cerebral Palsy of Eastern Connecticut
Board of Directors: Bacon & Hinkley Home, Inc. (non-profit home for the aged)
Page 19QUALIFICATIONS OF THE APPRAISERS Marina R. Bogart Page 20
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