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Regular Visitor
fishy
Posts: 4
Registered: ‎04-08-2008
0

effective year built

I've seen some homes that have been 'rebuilt from the foundations up' and are effectively new homes but still have the year built listed as the original year (eg 1920 or whatever). Others have the year built listed as the current year. What determines whether the seller/builder lists the year built as the original year versus the current year? Are there criteria governing whether a house is legally considered a new construction versus a remodel? What are the advantages/disadvantages of each approach for the builder and for a potential buyer - any tricks or traps to be aware of?
Where could I get more information on this subject?
Redfin Associate Agent
JanelleS
Posts: 1,489
Registered: ‎07-05-2007
0

Re: effective year built

If the rebuild follows the original foot print of the home, it is a remodel. If the structure is torn down and you start from scratch, it is a new house.
 
 
Janelle Saylor | Redfin Open Book Manager - Listings
Redfin Open Book
Visitor
eagles11
Posts: 1
Registered: ‎04-09-2008
0

Re: effective year built

Quick question.  can anyone tell me what a sale price of $0 means when you are looking at past sales.   Thanks..
Visitor
Kirsten_R
Posts: 3
Registered: ‎02-08-2008
0

Re: effective year built

Hi Fishy,
 
Effective Year Built (EYB), vs. Actual Year Built (AYB), is an appraisal term for a home that has had major remodeling or structural changes. If a house has been rebuilt "from the foundation up" , an appraiser would usually consider the "effective year built" as the year the remodeling was done. Real estate agents will also use this terminology when inputting listing data (which is what you see on Redfin) however, there is no legal definition for this that I am aware of.
 
As for things to look out for: With any home rebuilt or not, a good, thorough inspection with a reputable inspector is your best bet to determine if things have been done properly and to code. Also, you will want to check with the city or county to make sure that all the proper permits were obtained for the remodel. Additionally, you can ask the builder for references and follow up on those.
Kirsten Robertson
Redfin Corporate Trainer
Redfin Associate Agent
JanelleS
Posts: 1,489
Registered: ‎07-05-2007
0

Re: effective year built

Our hot shot Lead Software Development Engineer, Shahaf Abileah answered this question on another forums thread. Here's the link to that thread, and here's his answer, too.
 
First, there are some valid transactions valued at $0. One example is "quit claims", transactions that are associated with divorce situations. Our intent was not to include "quit claims" records on our site but we discovered an issue where some slipped through. We are working on that fix for the upcoming release.

Second, we found that in some situations our sold-property feed included records that had a valid sold date but no price at all. In other words, the feed was saying "we know the home sold on such-and-such date, but we don't know the price". We were unintentionally interpreting this as "we know the home sold on such-and-such date for $0". We will be fixing this problem as well in the next release (by not including these records in our similars comparison).
Janelle Saylor | Redfin Open Book Manager - Listings
Redfin Open Book
Visitor
BruceKap
Posts: 4
Registered: ‎06-15-2008
0

Re: effective year built

I wonder if you can use the effective year buillt for insurance purposes. I have been checking quotes, and the rates for newer houses are lower than very old houses.
New Visitor
davanam
Posts: 1
Registered: ‎05-08-2009
0

Re: effective year built

I think it should be a missing information for a property ,or no sales occured for that property.
Contributor
paranoidperry
Posts: 46
Registered: ‎07-05-2008
0

Re: effective year built

1 advantage I know of is an older home say 1904 will be more xpensive to insure than a home that was remodelled.renovated/built in 2008. thats a fact as I just had our new home actullay a home that was originally built in 1904 and extensvely remodelled/rennovated to the studs (new main systems etc) and is insured as a 2008 home so our home insurance was cheapoer by more than $400....

 

2008 as that was the completed date of the rennovations.....

New Visitor
JKnott
Posts: 2
Registered: ‎08-15-2009

Re: effective year built

[ Edited ]

While there is no legal definition to Effective Year Built, it is commonly used to indicate the year to which the structure met building codes. For example, a home built in 1920 may have had major remodeling or been destroyed and entirely rebuilt. If during the remodeling process the services to the home (plumbing, heating, cooling, electricity, etc) as well as structural standards (load bearing walls, earthquake requirements, roof securements, etc) were all brought up to the current codes of the time, then for that 1920 home the Effective Year Built may be 1980. Of course, if the structure was rebuilt from the ground up, it will meet all current codes for that year.

 

For the purposes of insurance, the leading causes of loss are electrical, plumbing, heating/cooling, roofing and foundations. If the year these were all brought up to code was 1992, then that is the year built for insurance standards, even if the perimeter walls were constructed in 1940. Documentation would be necessary to prove the claim of effective year built, such as permits and approvals by local authorities.

 

In most databases, in order to have another year entered as Effective Year Built, there must have been building permits and completed inspections shown on record. The most common reason for a different Effective Year Built is a total house fire.

 

 

Message Edited by JKnott on 08-15-2009 02:48 PM
Message Edited by JKnott on 08-15-2009 02:48 PM
Contributor
roktoy
Posts: 20
Registered: ‎05-28-2008
0

Re: effective year built

a sales price of 0 dollars usually means, that another person was added to the title, or maybe in a divorce one person gave the house to the spouse, or it was put in a trust, could be a lot of things, but usually an internal transaction.  It was not sold really for 0 dollars