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This is what I typically do to find a cost analysis. I get a general idea of the square footage of the property. You can do this by either getting it from the borrower, or finding the information on-line.

Two of the best places to go are:

Maine Towns

New Hampshire Towns

As the square footage of a house goes up, the cost per square foot goes down. I will give you some examples for average or good quality construction. Of course, better than average quality homes would be slightly higher but typically not more than 10%, and homes in remote areas may be 10% lower, as cost of labor decreases in those areas. However, here are the some samples.

Basement cost per sqft $20.00 per estimate.
Garage costs are $10,000 to $25,000
Rough estimates on things like finished basements, decks and porches.

Overall condition is very arbitrary, but let's just looks at what happens.

• Effective age 05 = 07% depreciation or a residual of x 93 %
• Effective age 10 = 15% depreciation or a residual of x 85%
• Effective age 15 = 22% depreciation or a residual of x 78%
• Effective age 20 = 29% depreciation or a residual of x 72 %
• Effective age 25 = 37 % depreciation or a residual of x 63 %

Add in the site value and you have a rough idea of value plus about $10,000. .

For example a 1200 foot ranch with a 2 car garage and a basement that is 10 years old in good condition. (1200 x 100 = $120,000 +basement $24,000 plus garage $20,000 equals about $164,000 x .93 % = $152,000 plus a site value of $60,000 would mean a value contribution of $210,000.

If you need $255,000 than I would say there would be a concern. The cost analysis is not typically off more than 15 percent. in fact is normally not off more than 10%. Unless the property is unique, and there by an underwriter is being overly concerned with secondary market guidelines.