Economic Life

[Fred]

As it has been stated many times here, Our work is a work of Art,

Speak for yourselves. The only "artwork" I do are maps and graphics; and the layout of the report (headings, sub-headings, white space).

 

[EVAUSA]

[

As it has been stated many times here, Our work is a work of Art, math is also used in art, as in ; when you follow the numbered dots to create a picture. Think I'm wrong, check your guidelines, they are all directional and ifn you follow the dots, you have a portion of the Art you are about to create, the "special" part is Your ability to understand Your area of the market and paint the "Picture" in a form understandable to the reader. Most UW's review "Velvet Art" on the weekends, thus the "Stupid Stips" - they just fergit they're not at the Flee Market any longer.........LOL

Jay, I like your idea of art, somewhat logical. I had to "partner-up" with an appraiser in a class I took a couple months ago. I got stuck with Dazy Windsong, she must of gotten certified when they were handing them out in the 80's. We were suppose to analyze a problem for class discussion. After we finished the problem, Dancing Sunflower says to the class, "All this analysis is taking out the artistic process and feeling in the appraisal." Let's just light one up and sing campfire songs. Koom by ah my lord.... (puff puff pass)

 

[Mark to market]

I am trying to get a picture of every appraiser in America coming up with their own creative way to establish cost and economic life. Add in the number who use their own measurement system, and those that overlook neighborhood comps for ones that “feel” better and the picture I am getting is much like the Augean Stables (before they were cleaned).

It seems to me that if you are going to use M&S, you should use the whole system (see p e7 for econ life). If you are only using part of it then do not complain if the final result is inaccurate.

 

[JSmith43]

I am trying to get a picture of every appraiser in America coming up with their own creative way to establish cost and economic life. Add in the number who use their own measurement system, and those that overlook neighborhood comps for ones that “feel” better and the picture I am getting is much like the Augean Stables (before they were cleaned).

It seems to me that if you are going to use M&S, you should use the whole system (see p e7 for econ life). If you are only using part of it then do not complain if the final result is inaccurate.

M & S doesn't do Location, Location, Location very well

 

[PropertyEconomics]

[

Jay, I like your idea of art, somewhat logical. I had to "partner-up" with an appraiser in a class I took a couple months ago. I got stuck with Dazy Windsong, she must of gotten certified when they were handing them out in the 80's. We were suppose to analyze a problem for class discussion. After we finished the problem, Dancing Sunflower says to the class, "All this analysis is taking out the artistic process and feeling in the appraisal." Let's just light one up and sing campfire songs. Koom by ah my lord.... (puff puff pass)

And when was yours "handed" out?

I have long been a proponent of measuring depreciation from the market but its not something I wish to rehash with all the unbelievers. The fact is each market reacts differently with both cost and depreciation and in my opinion market measurement is the best form of reflection.
If you wish to use a book in which the primary data is from the 50s and 60s by all means knock yourself out. I would agree with Mr Raney you should be consistent in your use and application if that is how you choose to do your assignments. :icon_idea:

 

[Webbed Feet]

I am trying to get a picture of every appraiser in America coming up with their own creative way to establish cost and economic life. Add in the number who use their own measurement system, and those that overlook neighborhood comps for ones that “feel” better and the picture I am getting is much like the Augean Stables (before they were cleaned).

It seems to me that if you are going to use M&S, you should use the whole system (see p e7 for econ life). If you are only using part of it then do not complain if the final result is inaccurate.

And if one blindly uses the life tables from M&S, and it turns out that the information in those tables is not reflective of the market for the subject, then if later facing a board complaint in front of a well educated board ...... don't expect much mercy. Because ya'all were supposed to know better than that.

Webbed.

 

[Mark to market]

M & S doesn't do Location, Location, Location very well

Location differences are to be expected. Once one dials in on the variance for location 'A', I would expect to find a relationship in the numbers from house to house.

 

[FIDELITO]

economic remaining life for manufactured homes

What about for a manufactured home ? the one built in 1993 ,looks in great condition inside and out ?

 

[timd354]

And if one blindly uses the life tables from M&S, and it turns out that the information in those tables is not reflective of the market for the subject, then if later facing a board complaint in front of a well educated board ...... don't expect much mercy. Because ya'all were supposed to know better than that.

Webbed.

"well educated board".....in most jurisdictions that is pretty laughable....gee, its not like many board members are political hacks appointed by their buddy, the good ol' governor or anything like that.

 

[Mztk1]

Though I don't have anything against measuring depreciation from the market as PE does, I also don't think a well educated board will nail someone for relying on the Marshall & Swift when completing the cost approach on a residential property either.

My only caveat is, when using the Marshall & Swift, you really have to know how it works and be sure a reviewer can replicate it if need be. I don't see many appraisers, for instance, providing the wall heights and ceiling heights in the report, nor the number of plumbing fixtures and rough-ins, nor the floor material percentage breakdown. You can't replicate the M&S without that stuff.