2055 refi

[2020]

I received an order for a 2055 conventional refi. The engagement indicates that this client requires a replacement cost estimate to be included. I have never seen this before. What does this entail?

 

[Mike Ault]

I received an order for a 2055 conventional refi. The engagement indicates that this client requires a replacement cost estimate to be included. I have never seen this before. What does this entail?

They're just wanting a simple cost approach. Much easier than a "reproduction cost estimate".

 

[Terrel L. Shields]

I received an order for a 2055 conventional refi. The engagement indicates that this client requires a replacement cost estimate to be included. I have never seen this before. What does this entail?

They probably want it for insurance purposes. So, in bold letters somewhere in the report state that 'PROVIDING REPLACEMENT COST NEW FOR THE BUILDING IS NOT TO BE USED FOR INSURANCE PURPOSES." An insurer will used "RECONSTRUCTION" not "REPLACEMENT" nor "REPRODUCTION" costs.

 

[David S]

Just wondering why 2075 also called drive by. Does it need to take any subject or comps' photo? What's the difference from 2055?

 

[Dublin ohio]

Just wondering why 2075 also called drive by. Does it need to take any subject or comps' photo? What's the difference from 2055?

2075 is not an appraisal. It is a property inspection report

 

[David S]

2075 is not an appraisal. It is a property inspection report

Oh, then from AMC price list, $200 for 2075. Can we do it? Just one page, right?

 

[Dublin ohio]

Oh, then from AMC price list, $200 for 2075. Can we do it? Just one page, right?

I wouldn't do it as a "drive by". Some of the fields you have to answer typically could not be determined by a "drive by".

 

[Lee Lansford ASA]

I received an order for a 2055 conventional refi. The engagement indicates that this client requires a replacement cost estimate to be included. I have never seen this before. What does this entail?

It entails you doing the cost approach.

 

[Salty]

Cost approach on a 2055??? Uhhh how? I wouldn't go near that.

 

[Dublin ohio]

Cost approach on a 2055??? Uhhh how? I wouldn't go near that.

You would just use the same assumptions about the subject that you would in the SCA