Extraction Method

[alebrewer]

Because all the approaches are related. That matched pair(s) is revealing contributory value in a SCA and depreciated cost new in a CA.

I don't disagree with that - I just wouldn't be concerned with the depreciated cost new in the CA...

 

[Michigan CG]

If you're implying that residential appraisers routinely apply depreciated cost for individual adjustments on every appraisal they perform, you're one of the most optimistic folks I've EVER met...

I am not implying that at all. I think many appraisers SAY they used matched pairs but really use a list in their head. I use depreciated cost all the time, daily but I do have a few matched pairs such as basement vs. no basement and finished basement vs. unfinished basement.

The claim of "matched pairs, matched pairs, matched pairs" works OK in AMC world not so much in the non-lender world.

 

[Michigan CG]

I just wouldn't be concerned with the depreciated cost new in the CA...

The depreciated cost new is the end result of a credible cost approach.

 

[BRCJR]

Wasn't really trying to be ugly. Just was wondering the posters experience level.

If I offended them I apologize.

 

[alebrewer]

The depreciated cost new is the end result of a credible cost approach.

..... ok...

 

[Artemis Fowl]

..... ok...

Which provides support for a SCA adjustment. Like is supposed to happen. It's not just a guess but a MARKET supported adjustment.

 

[alebrewer]

Wasn't really trying to be ugly. Just was wondering the posters experience level.

If I offended them I apologize.

The poster's experience level is 30+ years, AQB Certified USPAP Instructor, past TALCB peer investigator and mentor, author of a published CE Textbook on Manufactured Housing Appraisal, published in several trade magazines, both Appraisal and Mortgage, MS in Economics, nationally recognized public speaker on appraisal topics, etc.

Seriously though, I started appraising last week.

And yes, you were trying to be ugly.

 

[alebrewer]

Which provides support for a SCA adjustment. Like is supposed to happen. It's not just a guess but a MARKET supported adjustment.

I wouldn't argue that IF you had strong support for your cost new, and IF you had strong support for your depreciation, you could use that to support an SCA adjustment. I would, however, argue that you would be in the vast minority if you did that on every residential appraisal you performed...

 

[Artemis Fowl]

I wouldn't argue that IF you had strong support for your cost new, and IF you had strong support for your depreciation, you could use that to support an SCA adjustment. I would, however, argue that you would be in the vast minority if you did that on every residential appraisal you performed...

No argument there. These things are given a lot more consideration outside of GSE-land. Doesn't mean they are more or less valid.

 

[CANative]

That cost approach was developed for a simple new-contruction house.

The cost approach pre-dates the sales approach by many decades.