Extraction Method

[CANative]

I just don't understand why you persist in projecting what you think I might be saying. A more professional question would have been, "What is your explanation for why you don't complete the cost approach?" This passive-aggressive behavior is just childish, CANative.

And to your question, as I've already stated, I say that I don't complete the cost approach because I don't believe it is necessary for credible results. Does that sound wishy washy?

Also - what appraisers are arguing that it shaves off production time to exclude an applicable approach? You're making unsubstantiated assertions unless you provide documentation of your assertion.

Again, when I said "appraiser" I didn't mean you.

A lot of very fine appraisers have posted for decades on this forum and they too have held similar opinions of the cost approach for single family valuations. I have the same opinion. It is not typiclaly necessary. So I don't see why there is so much space between us... other than my original snarky post (which I offer my apologies for.)

Peace... Out.

 

[djd09]

yeah they like purple kool aid.

 

[alebrewer]

I have found over the years that those that discount (no pun intended) the cost approach are those that do not understand it.

Examples, please? Surely you aren't joining Zephyr and CANative by throwing around unsubstantiated assertions?

And I thought we were discussing it's applicability in residential assignments? No argument that it has applicability in other types of appraisal work - and possibly for other types of value.

 

[CANative]

Have you even read the Scope of Work Rule?

Yes. I am. So are most of the others. Just because it is not strictly necessary (in your opinion in any given assignment) is not an appropriate "out." It's more involved than that. Credibility is in the eye of the intended user.

 

[alebrewer]

Do you explain that you didn't complete the CA because it takes longer than needed? Or would that sound wishy-washy?

Your insinuation in this statement was/is that I don't do the cost approach because it takes longer than needed, which would be, IMO, a VERY poor reason for not developing an approach to value.

 

[BRCJR]

Hope you're not implying that I'm a Chief Appraiser at a 'non' real bank... I'll go with the assumption that you're not, as I most definitely work for a 'real' bank. And no 'real' bank I've ever worked for is interested in entrepreneurial incentive. ........................................

What size bank you work for?

 

[alebrewer]

Yes. I am. So are most of the others. Just because it is not strictly necessary (in your opinion in any given assignment) is not an appropriate "out." It's more involved than that. Credibility is in the eye of the intended user.

Disagree. If I don't believe some particular research, or approach to value, is necessary for credible results, I DO NOT HAVE TO PERFORM THAT TASK, and it absolutely IS an appropriate 'out' (to use your words). I am responsible for developing my SOW, not the intended user. And, at least in the case of agency work, neither the agencies, nor the investors, nor the lender, nor the borrower care whether the cost approach has been developed or not (sans the prior example of some lenders requiring it for insurance purposes).

 

[alebrewer]

What size bank you work for?

Big - and when I say big, I mean REALLY BIG. And they're GREAT. I don't mean just ok great, but REALLY great. The best I've ever seen...

 

[Artemis Fowl]

Big - and when I say big, I mean REALLY BIG. And they're GREAT. I don't mean just ok great, but REALLY great. The best I've ever seen...

LOL

 

[Zephyr999]

Examples, please? Surely you aren't joining Zephyr and CANative by throwing around unsubstantiated assertions?

And I thought we were discussing it's applicability in residential assignments? No argument that it has applicability in other types of appraisal work - and possibly for other types of value.

@alebrewer we are discussing it's applicability...it's more about the stance of "I don't complete the cost approach because I don't believe it is necessary for credible results." From the world of science/medicine: it's like saying I don't do periodontal evaluations of healthy patients because it doesn't produce credible results. Uhm, hard to swallow that reasoning, which is why I claim lower standards given its the results of completing the approach that leads to the 'credible' or not credible' opinion. Belief is not part of the equation and thus my stance on not a valid exclusion reason.
Best of luck to you in your pursuits of working this all out.