Extraction Method

[alebrewer]

Another stupid and useless post from you.

I didn't call Mr. Brewer a liar. I just said the statement he made was false because it wasn't true 100% of the time. When I was a noob, I did not respect the cost approach. Then I grew up.

apparently, you've not fully grown up. Look at the cert page for the 1025, and you'll notice that Cert 4 is different. Cert 4 in the 1025 states that you certify that you developed your opinion of market value based on the sales comparison and income approaches to value. Why do you think that is? Also - while not calling me a liar, you did, in fact, imply that I am not a self respecting appraiser. Just as odious.

 

[George Hatch]

Not to get pedantic, but once again you have added a word (only) to the limiting which is not otherwise stated. Not even Fannie can tell an appraiser that they can't weight a cost approach or income approach towards a value conclusion. As a user, they can call out what they will and won't accept. We appraise a lot of properties that don't fit into Fannie's lending profiles.

 

[CANative]

^ This from an "appraiser" that uses the subject (only) to extract a land value indication.

 

[alebrewer]

Not to get pedantic, but once again you have added a word (only) to the limiting which is not otherwise stated. Not even Fannie can tell an appraiser that they can't weight a cost approach or income approach towards a value conclusion. As a user, they can call out what they will and won't accept. We appraise a lot of properties that don't fit into Fannie's lending profiles.

I know you don't do much agency work, but again, if you'll notice, cert 4 on the 1004 is different than cert 4 on the 1025. For the 1004, you're certifying that you developed your opinion of market value on the sales comparison approach, wait for it, ... period. Cert 4 on the 1025 says that you're certifying that you developed your opinion of market value on the sales comparison AND income approach to value. The reason for the difference is that the 1025 is a multi-family form, and they understand that the income approach has relevance. NOWHERE does it state that you, either in part or in whole, developed your opinion of market value on the cost approach. AND, to further solidify their stance, you cannot alter the certification page. So again, if you're of the opinion that the cost approach is necessary for credible results, either at the granular level, or at the philosophical level, you must recuse yourself from agency assignments.

 

[CANative]

All three approaches will produce an indication of value. Reconciliation is used to communicate the variances, strengths, and weaknesses.

To say that appraisers certify they "give no weight" to the cost approach demonstrates a fundamental lack of understanding the big picture. But carry on.

 

[CANative]

NOWHERE does it state that you, either in part or in whole, developed your opinion of market value on the cost approach.

Cert 4: "...unless otherwise indicated in the report."

 

[Deleted member 152047]

This is another instance of @alebrewer trying to have an "Ah Ha" moment with an exact literal interpretation of a text while wearing blinders, earmuffs, and saying "la la la la la la la la"

 

[alebrewer]

^ This from an "appraiser" that uses the subject (only) to extract a land value indication.

I'm sorry - where was it that I said that I use the subject only for extraction? I think, if you'll read back through my comments, I said that The Appraisal of Real Estate nowhere states that more than one property MUST be used. I think you'll also see where I stated (multiple times) that the more observations you use, the stronger your opinion will be. It's sad that some folks resort to name calling when they are wrong.

 

[CANative]

You have to remain true to USPAP (after all, you certified this.) After that, it's up to Fannie Mae whether the property is eligible for use as collateral.

 

[alebrewer]

Cert 4: "...unless otherwise indicated in the report."

Of course they're not going to tell you that you can't use the cost approach - it's part of the form after all. What I've been saying, and what seems to not be getting through, is that you are certifying that you developed your opinion of market value based on the sales comparison approach - period.