Alternative To Marshall & Swift Res. Cost Handbook

[Hank Outlaw]

Why not get the new construction cost right from the market? I know that Marshall & Swift is widely recognized as a cost source, but I have found many times it is not representative of my area. As far as court goes, I'm no expert, but if one has ones facts in order, I would think that having the appropriate data directly from the local market would be hard to argue with versus a national cost service with a local multiplier from a larger city 50-60 miles away.

I have never had any question about cost when citing that my cost data was obtained from the local market (occasionally supplemented with M&S data). On complex (residential) properties I have utilized M&S Swiftestimator which charges you $6 or $8 per report. You can copy and paste that directly into your appraisal report.

Thanks for the other sources! I have often wondered if there are others out there. M&S seems pretty pricey to me, especially when the data is right there (new construction sales).

Hope this helps some.

Hank O.

 

[Terrel L. Shields]

2055's for which no cost appraoach is requested.

Merely being asked to not do the Cost Approach hardly complies with USPAP. I guess I never will understand why it seems so easy to avoid the Cost Approach and how many excuses can be utilized to rationalize that approach out of existence. So long as it remains in USPAP, I will try to do it where it is applicable.

The 2055, imho, is the most dangerous form we utilize. As far as I am concerned I could write a one page letter that is more detailed. The fact Fannie approved the form hardly makes it viable. I recently put out my new price list and will do a 2055...for $100 more than a 1004.

Ditto for income approach. I have seen far too many appraisers who eschew the approach until they are called on it, say when an underwriter requests it because the buyer is buying to lease it out or it is currently rented...suddenly the appraiser CAN find data enough to do the approach but a few days earlier could not....how convenient.

 

[Keith]

https://www.swiftestimator.com/

Marshall & Swift have an online estimator also. I used it once on a new FHA construction. It will print out the cost sq ft form that FHA requires.

M&S wants $8 a pop. It's fairly pricey, but would use it again.

 

[Tejus]

FHA/HUD recently clarified they do not require M&S cost estimates, other cost services are acceptable:

http://appraisersforum.com/forum/index.php...pic=22483&st=15

I'm currently working with the Craftsman staff to come up with a FHA/HUD approved and usable cost system. Their National Home Estimator CD (approx $40) includes their National Construction Estimator and their National Home Improvements Estimator. This is what residential appraisers would normally use. The cost data is there, but not readily available in the square foot cost method referenced in HUD 4150.2.

We're discussing ideas on how to address these issues. With some creative thinking, the solution may be very simple, useful and customizable by the user. Stay tuned.

hasta la vista.

 

[Terrel L. Shields]

I carried a letter from HUD that was written to Boeckh, circa 1994, that said Boeckh was an acceptable alternative to M & S, signed off by Martinez himself. But years later even FHA staff would argue it had to be Marshall & Swift.

 

[Kathy in FL]

Does it have a manufactured home section? (That's really the only reason I use M&S any more...for the 1004C)

Kathy in FL

 

[Terrel L. Shields]

Kathy
I recommend the NADA book for mobile homes. M & S and Boeckh (may they rest in peace) had mobile home sections, but I never quite trusted them. Its a $150/year w/ comp printout and much better data, imho

 

[Kathy in FL]

Actually, I find that the best source for MH info is my local "classified ad" paper. It's free, and it comes to my mailbox free once a week. All of the MH dealers run full page ads with floorplans and prices. It's a great indicator.

Kathy in FL

 

[Lee Lansford]

Kathy, one question:

The ads for new MH which include floor plans and prices...that's "prices", not "costs" correct?

There is a difference.

 

[Tejus]

I'm working with the NBC/Craftsman and FHA/HUD staff to extend the building-cost.net cost estimator to become an FHA/HUD approved cost estimator.

If you have any suggestions or requirements for a cost estimator, please post them or submit them directly to me. One of the views posted regularly on this forum is the vendor's lack of responsiveness to the appraiser's requests. You now have have an opportunity and are encouraged to provide any suggestions/requirements you may have. No guarantees, but all suggestions/requirements are welcome.

The current requirements are:

- Sq Ft Cost Methodology tool approved for FHA/HUD usage. The tool will also be usable for non FHA/HUD assignments.

- FHA/HUD approval includes the following:
- sq ft cost methodology
- Form 1007 or equivalent report. The Form 1007 was originally designed as a field data collection tool. Much of the information is a duplicate of the information on the 1004 and can be removed. I anticipate there'll be a new one page Form 1007a with the fluff removed.
- page reference to the data source.

- Allow users to include additional cost items not currently included in building-cost.net. For example, swimming pool, storage shed, etc. These should be based on the sq ft. Ad hoc entries must also be supported for those "unusual" items.

- Allow users to specify a local adjustment % to be applied to all cost entries in the report, ie a local cost adjustment.

- Allow users to enter a line specific adjustment % to be applied to only that line in the report.

- Allow users to export the report to excel in a usable format.

Feel free to submit your $.02 worth.

The new Fannie Mae forms may also have an impact on the cost approach usage. This is tbd and could impact this project.

muchas gracia.