Economic obsolescence

[CANative]

You're not using the term "infer" correctly or at least as the word relates to appraisal methodology. You're implying that "infer" means an unsupported guess.

 

[SANDY]

I like when people start threads with the sole purpose of posting snarky replies to anyone who answers. What a good use of time.

Maybe turn-about is fair play for all of the broad based mostly unsupported assumptions you high falutin certifieds make about trainees and me rather than debate the issue.

 

[Elliott]

Why the hostility? I'd have to think most of us certified generals have actually learned something about appraisal practice and theory.

 

[Stone]

Maybe turn-about is fair play for all of the broad based mostly unsupported assumptions you high falutin certifieds make about trainees and me rather than debate the issue.

Yeah...'cause any hostility directed your way is most certainly undeserved. No matter how much of a red-azz you get by keeping your status as "trainee" and whining that others take shots at you for it, your posts are completely missing the point (intentionally so, I imagine). I get that you enjoy taunting people only to get defensive when you are questioned - the questioning doesn't come because your status says trainee. It comes because you are regularly a jerk. I'm also fairly certain you understand that, as well.

At every message board I visit there are people who get a strange sense of enjoyment from existing there solely to confront. I'm sure there is a term for this beyond simply "troll".

 

[Tim Hicks (Texas)]

Good question-is M&S or any one of a dozen other cost manuals always accurate, is your rel always accurate, your site value? There are weaknesses to all of them.

See ya in class!

Every market is an imperfect market and there is no perfection in real estate appraising. That is why it is called an "opinion of value." It is also why most consideration is given to the sales comparison approach to value because it should be the best demonstration of that market.

Have you ever used the M & S 1007 form? Every appraiser should be taught how to do the cost approach with that form. Most appraisers seem to be taught how to fake the cost approach. In my market, I have found the M & S to be quite reliable.

You really need only three things to survive in this business. 1. Proper training. 2. The ability to learn. 3. A good sense of humor. Strike three, you're out!

 

[CANative]

I have found the M & S to be quite reliable.

Most likely because you have worked for so many years in a very stable (relatively speaking) housing market - by your own admission. You haven't had to grapple with entrepreneurial profit swings because the stability keeps EP low enough to be inside the margin of error.

 

[Tim Hicks (Texas)]

Good question-is M&S or any one of a dozen other cost manuals always accurate, is your rel always accurate, your site value? There are weaknesses to all of them.

See ya in class!

Most likely because you have worked for so many years in a very stable (relatively speaking) housing market - by your own admission. You haven't had to grapple with entrepreneurial profit swings because the stability keeps EP low enough to be inside the margin of error.

How good are you feeling about those $700,000 manufactured home appraisals now? I still belive the EP you are so defiant about was a false market that more than likely has corrected itself now. But it is CA and people are crazy with their money there.

 

[CANative]

How good are you feeling about those $700,000 manufactured home appraisals now? I still belive the EP you are so defiant about was a false market that more than likely has corrected itself now. But it is CA and people are crazy with their money there.

This is exactly true. I don't feel bad about the $700k MH appraisals because that WAS the market then, caused by excess profit due to the imbalance in supply and demand. If the land was selling for $100,000, the mobile home cost $150,000 per NADA, and it was another $100,000 to prepare the lot and install the house but it sold for $700,000 where did the extra $350,000 come from?

What is a "false market" in the context of appraisal? Sounds like something SANDY would say.

Edit: Forgot the emoticon.

 

[Tim Hicks (Texas)]

This is exactly true. I don't feel bad about the $700k MH appraisals because that WAS the market then, caused by excess profit due to the imbalance in supply and demand. If the land was selling for $100,000, the mobile home cost $150,000 per NADA, and it was another $100,000 to prepare the lot and install the house but it sold for $700,000 where did the extra $350,000 come from?

What is a "false market" in the context of appraisal? Sounds like something SANDY would say.

Edit: Forgot the emoticon.

I seem to recall you would have numerous additional improvements (garages, decks, etc) with lots more profit built in on those improvements. A market totally out of control. A false market is paying $700,000 for a $150,000 trailer. Heck, we don't have $150,000 manufactured homes here without at least ten acres underneath it.

 

[CANative]

I seem to recall you would have numerous additional improvements (garages, decks, etc) with lots more profit built in on those improvements. A market totally out of control. A false market is paying $700,000 for a $150,000 trailer. Heck, we don't have $150,000 manufactured homes here without at least ten acres underneath it.

That $750,000 MH had 15 acres which was essentially an entire small mountain. It had 360 degree views of the largest natural lake in California on one side and a beautiful farming valley on the other side.

But on a smaller scale in other parts of my area these types of properties were selling at 40% or 50% higher than costs instead of 10% or so of costs. EP was out of control.