Cost Approach and those who "mail it in"

[PropertyEconomics]

Im not telling others to move on there is nothing to see ...

 

[Mile High Trout]

No, but you're good with stating the obvious. That's something at least.

 

[PropertyEconomics]

No, but you're good with stating the obvious. That's something at least.

You add so much to the discussion .... Im sure your Harley has Ape Hangers too doesnt it .... sheesh.

 

[incognito]

You guys/gals are STILL playing on this thread?

 

[Mile High Trout]

Property, I don't have a Harley, but I do sport a chain wallet, and I did save a bunch of money on Geico.

All while mailing it in. Go figure.

 

[DMZwerg]

https://www.appraisalinstitute.org/findappraiser/downloads/brochures/Understand_Appraisal.pdf

From the Appraisal Institute , referencing the three approaches to value, it says exactly what I was stating in my posts...the value indicators are developed and then the DIFFERENCES among the value indicators are addressed in the reconciliation.

Througout the document, they are referred to as VALUE INDICATORS.

Have you actually read the document???

NO WHERE in the ENTIRE PDF you quoted is the word "indicator" used.
Go ahead, go to the document and do a search on the word "indicator" ... I'll wait ...

No results? Imagine that!
Now search the word segment "indicat" and see what comes up:

• page 6: "The value indicated by recent sales of ..."
• page 7: "Reconciliation of Value Indications and Final Opinion of Value"
• page 9: "that result in indications of value for the subject property."

See, they are never CALLED "indicators" anywhere in that document you quoted. If we go back to page 7 we have "Land Value Opinion" followed by "Application of the Approaches to Value" followed by "Reconciliation ..." and finally "Report of Defined Value". So Land Value Opinion is an opinion of market value, Defined Value is an opinion of market value, Final Opinion of Value is an opinion of market value, and any result from any of the three approaches are opinions of market value. The three approaches can be indications of value and opinions of value at the same time, and can differ (actually, usually do) and thus why they need to be reconciled.

Please read carefully the document you quoted and what you are now trying to say.


BTW, I would bet that some of the old hats around here could probably confirm that it could be POSSIBLE (and probably when) for the appraiser to develop only one approach to value, express an opinion based on that approach, then still have a different reconciled value.

 

[PropertyEconomics]

I do sport a chain wallet...

That says it all!!