Climate adjustments

[Joyce Potts]

That's quite a stretch. Look to your specific market and stay away from M&S.

 

[Mr Rex]

Climate adjustment on a 100 year old house cost approach. Is it April 1st again?

 

[Mztk1]

On page D-10 the first two are mild, the second two are moderate and the third two are extreme. DC is fully in the mild from the northern tip of NJ down to southern Georgia it is moderate.

 

[Tim Schneider]

I don't think the CA is even applicable on a 100 year old home. Why bother?

 

[redfish]

I don't think the CA is even applicable on a 100 year old home. Why bother?

The CA could help support the opinion in the sales comparison approach when considering the replacement cost if there are newer homes in the area on sites with similar land value. Determining the cost to replace the subject, with no consideration given to DEPR, could reveal the difference in the cost to build new (CA) and the sales comparison approach results for the subject reflecting the market resistance or preference for historic "charm or character" of the subject property. If there is no new construction in the area, then the CA really wouldn't help.

The cost approach should always be considered in determining the value of a property. The appraiser must decide if inclusion in the reconciliation of value in the report misleads the user or results of the appraisal.

I know this is off topic but the cost approach should be considered in the development of an appraisal, but not always included IMO.

 

[Gary Schinagel]

Be nice to know just how much depreciation MS calculated on that one. Probably cost way more with the depreciation included than valued even using the replacement version. More important than climate because you can get MS to say whatever you want and as noted the cost approach including depreciation already covers. Its the verification of site value. I have had reviewers on a report and recommend that I correct the cost approach that it is LOW(not counting depreciation easy to rebuttal NOT) and the cost approach was already 100000+ higher than reconciled value because it was an older home in a prestigious neighborhood. The review was initiated from a my house is worth more than I valued it complaint and threats to change or transfer without approval from lender in WRITING. And they used my appraisal to close the loan and when the fromal complaint finally came to a sit down the subject had already sold for 735000 which was 4000 dollars less than I valued it(not the 850000 they wanted). Instead of getting a gold star for standing up with written threat for transfer documentation noted previous day of complaint,closing the loan and the subject selling for my reconciled value. Guess what it was my to low (eventhough it was already 100000 higher than reconciled value)cost approach was all the reviewer could come up with. He stated you had to push almost everything in MS to the right to be accurate in Santa Fe. I made 475.00 on the assignment and it cost me 1200 to defend a Brain **** from the reviewer, they got to find something, unless your on the board). That darn cost approach. What about the view of the NAMBE Mountains I thought thats worth something.
We need to stick together. And of course not made to order. We are Inspectors,Draftsman,Photographers,Contractor Estimators and darn picky critical people. Get out of my way Im MR Magoo!

 

[Functional Obs]

That's quite a stretch. Look to your specific market and stay away from M&S.

See, that's exactly the kind of cr4p comment that I expect to get here

I regard Marshall & Swift as an excellent source, and I find that most of the people who don't like don't know how to use it in the first place.

Moreover, I get a lot of wishy-washyness from local developers ... many of whom are out of biz now anyway.

I'll continue to use Marshall & Swift, but thank you for your constructive comment

 

[Gary Schinagel]

See, that's exactly the kind of cr4p comment that I expect to get here

I regard Marshall & Swift as an excellent source, and I find that most of the people who don't like don't know how to use it in the first place.

Moreover, I get a lot of wishy-washyness from local developers ... many of whom are out of biz now anyway.

I'll continue to use Marshall & Swift, but thank you for your constructive comment

Rick you were not the one asking for help on this topic WERE YOU? Nobody said MS was not a valid or even the standard for cost take offs but not at the expense of proper local contractor support.If you pay attention to your new construction assignment and give an adjustment to MS based on verifiable contractors in the area then again your where you need to be in the cost approach. How in the heck can we know what you dont being an expert and all. REALLY! Can anyone call you today about how you ended up with the adjustment you already knew or ended up with. I dont see it here. Whats your contribution on this topic YOU ASKED HELP FOR. Please share your final analysis for the rest of the unchosen few. I say HA to all climate adjustmets. HA ya!!!!.

 

[TJSum]

I don't think a climate adjustment would be the place to account for this aging of the dwelling. How warped was it? I haven't seen too much of it with the homes built after 1900 so far, but with the homes prior to that, such as Georgetown and Old Town Alexandria, this warping is common place. I have seen it in some of the older homes of Capitol Hill too. If it is not too bad, this warping is rather typical, but if it is, you might want to call for an experts opinion.

 

[Dirty Harry]

See, that's exactly the kind of cr4p comment that I expect to get here.

Tell us what you really think Rick!

I use the online version of M&S that is linked into my appraisal software. Makes it pretty convenient and it merges into my report real sweet like. :new_multi:

I've used it enough that I feel confident with it. Of course, you have to pay for it every time you use it. The additional cost is passed on to my clients.