Appraiser Beware; The three approaches are related

[Joe Flacco]

....and atypical properties?

What about atypical properties?

 

[BRCJR]

What about atypical properties?

Do you develop a cost approach for them?

 

[Joe Flacco]

Do you develop a cost approach for them?

It depends. What exactly is typical and what is atypical?

 

[BRCJR]

It depends. What exactly is typical and what is atypical?

I guess I wasn't thinking of the residential lending world only. I forget the audience sometimes.

 

[Joe Flacco]

Nothing really seems "typical" to me in resi. I am not really sure what "typical" means.

 

[CANative]

The CA Board of Equalization has cost handbooks for most residential and rural property types. The Residential cost handbooks are segregated in "Pre 1990" and "Post 1990" construction to account for the variances between older standards vs. newer standards.

I consider all approaches in all assignments - as a check most of the time.

 

[Terrel L. Shields]

s not just replacement cost new with physical depreciation

USPAP only requires we develop the accrued depreciation. Therefore, the effective age can be calculated...or rather we calculate the remaining life. I don't have to separate functional or external obsolescences. So the CA has a real function to reverse engineer the comps to determine what their effective ages are and to apply that to the subject or adjust accordingly. I don't care how old it is. The same applies. Land is worth X dollars. Site improvements are worth Y dollars. The difference between sale price and the sum of X & Y is the remaining good. The Replacement cost does not require a duplicate of the dwelling, rather a reasonable facsimile thereof... So I don't have to include the function issues of the converted garage, dated colors, etc. The market is doing that for me.

 

[ucbruin]

Sounds like folks that swear by their chiropractor....
I remember back in the '80's a woman swearing that her son's bad breath was cured by the chiropractor....

 

[Mike Kennedy]

123456

 

[Mike Kennedy]

"This particular report concluded an opinion of value of $100 over the contract price. "

go figure.

p.s. the Bull$eye Lives on...........and on........