Extraction Method

[mike32716]

As an aside, Google Adsense has placed this ad on this thread. I'm not sure what a Modular Extraction Booth is, but it apparently involves dead mice. Perhaps Google is commenting on the quality of this thread.

 

[alebrewer]

Extraction has always been a chicken and egg problem for older homes. To extract the site you need a depreciation rate. To extract a market depreciation rate you need the site. Circular reasoning.

couldn't agree more - which is one reason I think the cost approach is meaningless for residential assignments.

 

[Artemis Fowl]

couldn't agree more - which is one reason I think the cost approach is meaningless for residential assignments.

As typically encountered on a 1004...I understand why you would think so.
I used to think that. I learned better. Properly executed, it can be very meaningful.

 

[alebrewer]

As typically encountered on a 1004...I understand why you would think so.
I used to think that. I learned better. Properly executed, it can be very meaningful.

If you're reporting on the 1004, you're certifying that you put no weight on the cost approach. Why would you report it? That is simply encouraging additional scrutiny by state regulatory agencies... If, however, you feel that you cannot produce credible results without completing (and reporting) it, then by all means - you absolutely should. It is my humble opinion that credible results are not affected by completing the cost approach...

 

[George Hatch]

couldn't agree more - which is one reason I think the cost approach is meaningless for residential assignments.

Some of them. Not all of them, though. "Residential assignments" is a term that isn't limited to the conventional mortgage lending programs.

i'm currently working on an SFR assingment involving a partially completed SFR of 18,000sf on a 5ac site with 400+ macadamia trees. I need to add a comprehensive cost approach to my appraisal report. That analysis will bear little resemblance to the Cost Approach on the URAR

 

[alebrewer]

Some of them. Not all of them, though. "Residential assignments" is a term that isn't limited to the conventional mortgage lending programs.

i'm currently working on an SFR assingment involving a partially completed SFR of 18,000sf on a 5ac site with 400+ macadamia trees. I need to add a comprehensive cost approach to my appraisal report. That analysis will bear little resemblance to the Cost Approach on the URAR

you know, I made the statement once, when teaching CE, that the cost approach was meaningless - and was instantly chided by a gentleman who worked for the Texas Land Board, who asked me, "how would you propose appraising a state prison?" To which I responded - "Ok - maybe it is applicable in certain situations." Still don't think it has any merit for a residential home appraisal, 1004 or not. What you're doing sounds like much more than a residential assignment, though...

 

[CANative]

If you're reporting on the 1004, you're certifying that you put no weight on the cost approach.

That is not an accurate statement. What self-respecting appraiser would say something like that?

 

[alebrewer]

That is not an accurate statement. What self-respecting appraiser would say something like that?

Well, I'm a self respecting appraiser, and I said that...

 

[CANative]

But it is totally false.

 

[alebrewer]

But it is totally false.

when was the last time you read your certification page, sir? Also - it's a bit demeaning to insinuate that I am not a self respecting appraiser.