1004C cost approach question

[mayflower]

Please help me. I am trying to stop turning down 1004C assignments going forward. I need to know what goes into the cost approach spaces highlighted in the attached file, and the source from with to get them.

 

[CANative]

You'll need to take some MH appraisal and cost approach classes. Or partner up with an appraiser who does these and is will to help you learn.

 

[Elliott]

http://images.nadaguides.com/forms/2012/TutorialMHCONNECT.pdf

I got tired of their fee for the half dozen MHs I did a year so I've stopped doing all the foo foo work, explained how I came up with my cost basis and its never been made an issue. Sometimes I use M&S's online for a new MH.

 

[Terrel L. Shields]

[url]http://www.nadaguides.com/Manufactured-Homes[/URL]

[url]http://www.nadaguides.com/Manufactured-Homes/images/forms/MHOnlineSample.pdf[/URL]

You will have to work backward to estimate the RCN and the total life...

Land value + NADA book + site improvements = CA (that's the simple way and it works)

Otherwise you can use the M & S Book, NBC book..etc.

You CA above? I have nary a clue what "source" you used?

 

[mayflower]

These are helpful and constructive posts. Thanks for your assistance. I am using NADA data for the costs. I culled some data from the US Department of Commerce's data for April 2013 too. I need to know what goes into Gray Pg., White Pg. Black SVS Pg., 15 years and older chart pg. and Yellow Pg.

I need to prepare a few hypothetical reports with all the data therein as my template.

I am grateful for all your positive responses Terrel Shields, Elliott. God fill your days with the type of joy your help has brought me.

 

[CANative]

I need to know what goes into Gray Pg., White Pg. Black SVS Pg., 15 years and older chart pg. and Yellow Pg.

That refers to the printed paper copy of NADA. It's been a very long time since I've used the printed version and I've tossed out all of my copies... must have had at least two dozen as you get a new one every three months.

You look up the manufacturer in one section (Gray for example, use the Gray page number you found your home in) then the next section to find the model (White Page for example, use the White Section page you found your home in), then using that number find the value in the Yellow Chart for the year and use that page number.

If your particular make and model is not listed then use Black SVS Pages.

Of course, if you use the CD this information will be spit out in the report you create when you are finished entering all the details about the property (and there are many, many, many, many details... )

I usually scanned this report into my appraisal report. I transferred that information into the little CA section.

SUPPLEMENTAL VALUE SECTION (SVS) EXPLANATION

This section is used when any one and/or all apply to the structure you are valuing:

A. When entering the Manufacturer:
a. Manufacturer's Name is not listed, by Region Code.
b. Trade name of home is not listed, by Region Code.
c. When the Trade/Model Name or Manufacturer's Name you are looking up is defaulted to the SVS.

B. When the Manufacturer and Trade/Model Name are listed, but:
a. Width size and/or similar size is not listed.
b. Region code is not listed.

C. When the home is Modular, and:
a. The home is Modular and is not listed with the MOD designation, use SVS Luxury or Deluxe

D. When the subject is a modular office unit:
a. Single-wide, use Standard
b. Upgraded or Multi-wide, use Deluxe

E. When the subject is a commercial office building:
a. Single-wide, use Deluxe
b. Upgraded or Multi-wide, use SVS Luxury

F. When the subject is a Park Model*
a. All Models, use SVS Park Model

The intent of the Supplemental Value Section (SVS) is to give the user a way to determine general construction quality.

Our Editors and Publisher have used reasonable care when assigning specific SVS categories. However, due to the varying construction features any one manufacturer may carry, the book user may feel the assigned category is inappropriate for a subject home. In this instance, we suggest the book user choose the SVS category that is best suited for the subject home based on their inspection.

 

[mayflower]

CANative

You have been very helpful. I am grateful for your time and effort. I purchased the NADA report twice now. The White pg. Black pg things are not there. I guess what I need to do when I do get the assignments is to insert the purchased reports into the submitted reports.

I have read posts from other forums where appraisers claimed not to have entered data into these fields. I was surprised that the reports were accepted without complaints.

 

[CANative]

The online and CD reports just use the "Chart Number" which if memory serves refers to the Yellow Page. When I first started using the printed version of NADA is was so horribly complex and tedious that I longed to quit appraising and go back to being a printer with a paper hat and dirty hands. lol

Since I started using CD back in '05 or '06 I just put a comment in the CA section to "See attached NADA report."

Are you correctly using ALL of the components, accessories and additive values unique to the property under appraisal? There are 3 drop down menus with dozens of items that need to be priced out.

 

[Terrel L. Shields]

The printout supplants the books page references. They are meaningless piffle in the computer age. CONNECT will do the printout for you