Alternative To Marshall & Swift Res. Cost Handbook

[Ben Vukicevich SRA]

Try this one for free

http://www.building-cost.net/

Ben

 

[Jim ATherton]

Good topic here, considering other cost data than M&S. One problem. FHA and VA new construction appraisal reports require a cost addenda taken right out of the M&S book. How do you get around that?

 

[Jeff Horton]

Originally posted by will miller@Jan 14 2005, 09:58 PM
What does the CD cost?

Check their web site. I don't remember but it was close to the book I think?

 

[Will43]

Residential Estimator 7- $709.95

Residential Xpress- $315.95

Which one do you have?

 

[Robert Anderson]

Originally posted by Ben Vukicevich@SRA,Jan 15 2005, 12:11 AM
Try this one for free

http://www.building-cost.net/

Ben

Ben,

Thanks for the link. I don't do that much work any more and don't want to spend the money for M&S. Also, I mainly appraise tract homes where the cost approach has limited or no applicability. So, that site looks great to me.

I was wondering if you have used the building-cost.net cost estimates for the cost approach in appraisals for lenders and if you have had any problems or negative feedback.

Thanks again.

Bob Anderson

 

[Elliott]

Thanks for the link Ben.

20 years ago I ran Marshall Swift through a HP calculator
that gave its expoential curve fit for the square footages.
The curve was 99.9 percent on M/S. Since then, everytime
I do a new construction I make note of the living area
and put down what the underlying base cost is now for
my local market. I'm a lot more accurate than M&S
in my market.

I think Ben's link though is a good source after you've
developed a local modifier for it. I wouldn't be afraid
to go into court and say my cost calculations came from
a recognized internet cost service. The detail is just
like a "real" contractor cost breakdown....much better
than M/S's breakdown.

elliott

 

[Lee Lansford]

Ben:

Thanks for the information re: www.building-cost.net

I've tried it once now and I plan to visit again.

I am wondering why the service provider would offer building cost estimates on their site with no cost or obligation on the part of the user? Do you know if this free service has been a long time offering or is it some type of a short-term promotion?

Lee Lansford, IFA

 

[Ben Vukicevich SRA]

Lee

Some one posted the link to that site on the forum ages ago so it's been around for awhile. I don't use it as I don't mess with the Cost Approach if I don't have to. Even with MS, there's lot's left out of the book. For FHA's you have to add a local marketing expense (5%-6%-7% whatever) to the final MS figure, along with permit fees, architect fees, etc. It's all BS...all the DEU cares about is that the value is not limited by the Cost Approach and then, I don't know if that even matters anymore in FHA world. I've never had to research it...by the time I add in all the costs/expenses that are left out of MS and left to me... :blink: :blink:

Jim,

VA never requires a Cost Approach (Smart Guys). FHA will take a Cost Approach on a new home from any recognized source as long as it has a form/print-out and you can cite the source. As usual, call your HOC for further guidance on the matter, cause your mileage may vary within the individual fiefdoms...

Robert,

Most lenders don't even look at the Cost Approach on conventional loans.....no matter how well you do it. Fannie will never accept a loan with the value based solely on the Cost Approach. Why?? Because if you don't have comparable sales, the home is probably not readily marketable. So why bother with it, if you can avoid it.

And finally, as appraisers we are not qualified to estimate cost new because the existing URAR still states Reproduction Cost. Sorry about that..that's the realm of another recognized professional...the architect or general contractor. Any other attempt is just blowing smoke to fill in a box and you'll get hung on it by anybody that desires to do so.

Ben

 

[Jim Onderisin]

Wow! Great information here. I didn't renew my MS this past December for the same reason Lee is considering. The price is way out of whack. Especially given that a large and increasing amount of my business is 2055's for which no cost appraoach is requested. Maybe the increasing price reflects declining subscription numbers.

 

[Mountain Man]

Ditto to Jim & Lee. I dropped my subscription last year, after buying it for 15 years. More and more of our request are for 2055's. The few URAR's I've done, I used Marshall's online service for $7 each. I might do one URAR per month, and that's much cheaper.