Cost Appraoch Insanity!

[Kevin Mc]

Rex, McNamara, and anyone else,

My analysis is wrong? I am submitting that at the present no conclusive analysis can even be done.

Bingo. Mr. Lansford is dead on. So are you. If your analysis proves nothing conclusive why bother with a cost approach? It isn't defeatist Dave, its a very real conclusion. Note it as such, nothing more.

 

[PropertyEconomics]

I'm happy that I did not join this thread earlier!

What I conclude:

a) External Obsolescence is present.

b) Most likely, the Cost Approach is not necessary in order to communicate a credible appraisal. Thus...why bother?

Lee Im glad you chimed in.

1) You never get to the cost approach if you do the highest and best use analysis of the land "as if vacant" correctly because its not financially feasible to build.

2) Land underlying an improvment has value. If nothing else it supports the improvements and that has value.

3) I agree with you that a cost approach for the improved property is not necessary.

And as a gentle reminder to all ... not everyone that disagrees with you is an enemy. Perhaps they wish to help you not make a mistake.

 

[Hamlet]

For God's sake, I write a thread to express my concern, admit I was confounded, and then you guys have to act the role again.

It just never ends.

Dave...

Dave,

It is a good thread. No one is trying to hijack. Geez, can’t have any tongue in cheek humor? I think you’ve been given great advice, but you seem to be stubbornly holding on to your original idea.

 

[xmtpedprl]

And for the record, WE don't think it's applicable, either. We just wanted to slug it out, see where it took us, and so we did. This, again,w as for an REO client who (for all practical purposes) could't care less about that portion of the appraisal. We simply gave it a shot, that's all.

And so I came here to discuss getting whipped by this one, nothing more.

Dave...

 

[Mr Rex]

OK, so pull you panties out of their wad, here's your lunch money back.

 

[PropertyEconomics]

Sometimes Dave we learn best when getting whipped ... ask Mr Rex if he ever learned anything when his daddy whipped him .. I know I sure did when mine got me.

 

[PropertyEconomics]

Originally Posted by Adept Appraisal
For God's sake, I write a thread to express my concern, admit I was confounded, and then you guys have to act the role again.

It just never ends.

Dave...


Dave .. I often felt the exact same way when my MAI mentor whipped me .. BUT ... I will give him this. I learned. He was a great teacher ... and despite my arrogance I learned I didnt know it all. Thank God for great mentors who have patience with the ignorant trainees.

 

[xmtpedprl]

I do not feel "whipped" by anyone here. Berated? Yes, but not whipped.

That CA on the REO in question, THAT whipped us.

Also, did your MAI mentor do the "whipping" on you in full public view, or was it one on one, kinda private sorta thing?

Just wondering.

Dave....

 

[Mr Rex]

Enough about your private fantasies Dave, lets get back on subject.

 

[PropertyEconomics]

I do not feel "whipped" by anyone here. Berated? Yes, but not whipped.

That CA on the REO in question, THAT whipped us.

Also, did your MAI mentor do the "whipping" on you in full public view, or was it one on one, kinda private sorta thing?

Just wondering.

Dave....

Dave .. it was often in front of other trainees. If I asked a question in public .. I got a public answer. I just learned never to take it personal .. it was for my benefit to learn to become an appraiser. What good would it do for everyone to agree with you .. when they think you were mistaken in your approach? And honestly, I dont think you got beat up too bad. Rex gave your money back .. but Im not pulling out the wedgie ... there has to be some rememberance of the learning experience. Doesnt there ..... :blush: