Ted Markow
Junior Member
- Joined
- Nov 14, 2003
- Professional Status
- Licensed Appraiser
- State
- New Hampshire
LO forwarded me an email today from his lender syaing that they need the cost approach done on a condex I recently appraised. Also it was included that the cost approach was needed to verify that the hazard insurance was enough to cover a loss. To me this presents a few problems. 1. The 1073 does not provide for the cost approach and for obvious reasons. 2. The costs approach is intended to be a means of either demonstrating value or supporting one of the other approaches on a URAR not for determining adequate insurance levels. 3. Hazard insurance on a complex is on the entire building not a individual unit and the cost is bared equally byt the 2 owners. would i have to do it on the whole building and if so would I not need to inspect the other unit to do it properly? Hmmmmmm. Maybe it should be behind door #4 Nope!