Condo Cost approach

[Reelestate]

Just got an order to provide cost approach on a condo for insurance.

It's a two unit project structured as a condo. The two owners need a structure value for insurance but how do you apply cost approach on a condo form?

 

[Fred]

but how do you apply cost approach on a condo form?

There's a form for insurable value?

 

[Reelestate]

It's basically a beach front duplex that these two guys have strucured as a two unit condo. He wants an appraisal including the cost approach for his insurance agent.

 

[The Warrior Monk]

There's a form for insurable value?

Yes there is!

Just not a Fannie form.

====================================================

To the OP:

You're dealing with an insurable value appraisal, not a market value appraisal. If you're using a cost service, such as M&S, they will have their own format. If not, you can design a form in a spreadsheet. I do the rest of the report in MS Word, and incorporate the cost sheet into the report.

 

[Fred]

Yes there is!

You have a link for that?

 

[The Warrior Monk]

I'll see if I can dig it up tomorrow...account password is at the office.

 

[timd354]

I would Never agree to a cost approach with an intended use to determine insurable value without quite a large fee....there is way too much liability involved.

 

[Reelestate]

What if I include cost approach with disclaimer:

COST APPROACH BASED ON FACTORS DERIVED THROUGH UTILIZATION OF MARKET EXTRACTED SALES DATA AND REGRESSION ANALYSIS TECHNIQUES. THE REPORTED COST APPROACH IS AN ESTIMATE, AND THEREFORE SHOULD NOT BE USED INSURANCE PURPOSES."

 

[JFulmer]

I would Never agree to a cost approach with an intended use to determine insurable value without quite a large fee....there is way too much liability involved.

x2...

LIA addressed this a year or two ago. We have a large comment in our reports about the cost approach and it's intended use. Tell the insurance agent to do their job and we will do ours! :new_2gunsfiring_v1:

 

[timd354]

x2...

LIA addressed this a year or two ago. We have a large comment in our reports about the cost approach and it's intended use. Tell the insurance agent to do their job and we will do ours! :new_2gunsfiring_v1:

Amen to that!!!