Boeckh Res. Valuation System is history

[Terrel L. Shields]

BRVS software is history 12/31/02 to be replaced by Residential Component Technology with new M&SB. I am sure the lower price will be history, too, next year. Appears to work OK, and does have pools - an item Boeckh overlooked.

Curiously, they sent me a subscription update for 12/31/02 for Boeckh and said after the first, will be replaced by RCT. Question. Why not just replace it now? I mean, like I am going to use BRVS 1 day?

Does not appear to convert old BRVS files, so I suppose I will have to archieve them with the software for a while.

 

[Anthony Blackburn]

What exactly does this software do?

 

[Terrel L. Shields]

Boeckh used a point survey system to determine a quality level. Input was siding, roofing, SF, # bathrooms, fixtures, CHA system, etc. etc., You could put in you own factor, add land value,etc. and using Year Built and your determination of condition and it would calculate the Replacement Cost New and the depreciation. Boeckh had an insurance option or a non-insurance (appraiser) option. I used it for several years and it worked quite well imho.

The new Residential Component Technology Program does something similar but seems strictly oriented to insurance use and calls its results reconstruction cost, not replacement cost. That much I do not like. I will study this before I make the plunge...
ter

 

[Jim McGrath]

Boeckh used a point survey system to determine a quality level. Input was siding, roofing, SF, # bathrooms, fixtures, CHA system, etc. etc., You could put in you own factor, add land value,etc. and using Year Built and your determination of condition and it would calculate the Replacement Cost New and the depreciation. Boeckh had an insurance option or a non-insurance (appraiser) option. I used it for several years and it worked quite well imho.

The new Residential Component Technology Program does something similar but seems strictly oriented to insurance use and calls its results reconstruction cost, not replacement cost. That much I do not like. I will study this before I make the plunge...
ter

While Boeckh had a good program, and it was cheaper the M&S, I always used the M&S for one reason. I testify in court on appraisals many times, and the Judges typically view M&S as the standard for the cost approach. So if you are using Boeckh, and your opponent is using M&S, you will have at least one strike against you going in.

Jim

 

[Terrel L. Shields]

Yes, but it is much harder to make that case when Boeckh and Marshall and Swift are now M&S/B. How could they say Boeckh was the lesser when the database used is one and the same?

In insurance claims, Boeckh was viewed by Judges as being equal or superior to M & S. Boeckh had more insurance bus. than M & S I think.

Also in a related posting, I am finding the new RCT is way over valuing construction costs. There is something wrong or there is a quality adjustment somewhere that is not apparent. Check that thread.

 

[Jim McGrath]

Yes, but it is much harder to make that case when Boeckh and Marshall and Swift are now M&S/B. How could they say Boeckh was the lesser when the database used is one and the same?

In insurance claims, Boeckh was viewed by Judges as being equal or superior to M & S. Boeckh had more insurance bus. than M & S I think.

Also in a related posting, I am finding the new RCT is way over valuing construction costs. There is something wrong or there is a quality adjustment somewhere that is not apparent. Check that thread.

Yes, but perception is usually reality, that may be why they merged. Insurance claims are a different animal, and while I do insurance appraisals, I have never, yet, had to appear in court for them, so I know not, of how they are handled.

Personally, for this area at least, I believe that M&S has been overvaluing for many years now.

Jim

 

[Terrel L. Shields]

I just got off the phone with Susan at Boeckh and was told that the RTC program is strictly an insurance product. RE7 is the recommended product for appraisers, (and of course, it is substantially higher price than RBVS was).

RTC replicates RECONSTRUCTION cost not REPLACEMENT cost thus is higher always.....as it apparently includes demolition costs, etc.

She stated that the Boeckh cost books were still going to be available at least for 2003.

will copy to my other post on the subject

Terry

 

[Jim McGrath]

I just got off the phone with Susan at Boeckh and was told that the RTC program is strictly an insurance product. RE7 is the recommended product for appraisers, (and of course, it is substantially higher price than RBVS was).

RTC replicates RECONSTRUCTION cost not REPLACEMENT cost thus is higher always.....as it apparently includes demolition costs, etc.

She stated that the Boeckh cost books were still going to be available at least for 2003.

will copy to my other post on the subject

Terry

Ter, I have always believed that insurance salesmen, who typically do the valuations each year, are motivated more by their commission, than they are at finding the correct value. I have seen too many overvalued properties done by the insurance companies, myown included. I have had to go to the State Insurance commissioner to get mine lowered to the correct value. The insurance companies will only replace what you have, so if you are insured for $500,000, the companies will charge you for that amount, but if it is destroyed, and it only costs $250,000 to rebuild it, that's all you get. The rest is pure profit to them.

So maybe Boechk is just giving them what they want.

Jim

 

[Terrel L. Shields]

When Shelter settled with the people in Midwest City, OK after a huge tornado a few years ago, they discovered that the average homeowner was vastly underinsured. The new RCT obviously is trying to avoid that. In our area, Shelter agents only got new software last year. The adjusters had the software, and Shelter phoned me from a remote office with a questionaire about my house to estimate my RCN.

 

[Jim McGrath]

When Shelter settled with the people in Midwest City, OK after a huge tornado a few years ago, they discovered that the average homeowner was vastly underinsured. The new RCT obviously is trying to avoid that. In our area, Shelter agents only got new software last year. The adjusters had the software, and Shelter phoned me from a remote office with a questionaire about my house to estimate my RCN.

Ter, when hurricane Andrew wiped out 90% of Homestead Florida 10 years ago, very few of the homeowners got the full amount of their insurance claims, and they were lucky to get their homes even replaced. And the insurance companies quit insuring homes in Florida and wanted the government to reimburse them for the expense. I have never seen an insurance company say anyone is overinsured, but I have seen multitudes of companies saying everyone is underinsured.

That would be like the AI saying everyone should have a full appraisal every six months to keep up with the value of their home. It would be good for appraisers, but it might be expensive for the homeowner.

Jim