Cost Approach For Mh

[Mr Rex]

The Cost Approach on a manufactured home is good for one thing. To show how badly the folks that purchased initially lost their arse when the trailer left the lot. Applicable? Not in the context of market value except to illustrate the level of External Obsolescence, which is not part of the typically accepted definition of "required" when "applicable".

 

[CANative]

That's absurd.

 

[Mr Rex]

Absurd? much like the Cost Approach most of the time.

the only reason you are such an advocate of the Cost Approach is your "consulting work" that is closely related to Tax Assessments and their heavy handed reliance on Costs. Grow a set and recognize that cost is cost and value is value and hardly never the twain shall meet.

 

[CANative]

When you grow up and figure out what you're talking about then we can continue.

 

[Mr Rex]

When you figure out that buyers don't buy on cost but price, we can talk. Market value is exponentially more closely related to price than cost. If not so, prove me wrong. Ever wonder why the definition of market value never mentions cost? FWIW, is there any definition of market value that includes cost as a factor except mass assessments?

 

[CANative]

Clearly you need additional CE and experience. You're posting like a noob.

 

[Mr Rex]

Clearly you don't understand the definition of market value and the purpose of an appraisal. You have wandered over into assessment land, In any case, I have learned not to wrestle with pigs or argue with fools. You have met the limit of my acceptance of idiocy. Bye Bye.

 

[CANative]

Idiot.

You have no clue what I do vis-a-vis my work in regards to tax appeal. It's not consulting and assessors don't just sit around key boarding numbers into a magic value machine.

 

[Mr Rex]

I don't know what you do except you have an irrational attachment to the Cost Approach which is consistent with tax assessment and not market value appraisals. Whine, moan, *****, whatever but in the real world Cost and Value are hardly ever the same, except in a perfectly balanced new construction market which happens how often? The SCA approach doesn't need or require a perfectly balanced market. Go back and review your prior posts about the Cost Approach and how EI & EP had to be magically inserted to accommodate the value and perhaps you might flash back to reality.Otherwise, I could give a small rats arse, and will stick to the truth, the market rarely recognizes costs, it recognizes price. If you can't grasp that simple nugget of truth, I'm not wasting my time with simple minded idiots.

 

[CANative]

Cost Approach

A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of (or replacement for) the existing structure, including an entrepreneurial incentive; deducting depreciation from the total cost; and adding the estimated land value. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised.

Still think the assessor is full of it?