Cost to cure adjustment on the grid?

[J Grant]

How can an estimate be anything other than an opinion, J? It's not a fact, and it's not generated by a machine. How is an estimate not an opinion of how much it will cost to cure the problem? This really is a simple concept.

OMG is it groundhog day again - wasn't this covered in the epic thread - USPAP defines appraisal as an opinion It does not define appraisal as an estimate.

Typically, estimates are costs or measurements, though an estimate might include some subjective judgment of it - the estimate is the list or budget or total of costs and labor - not an opinion of what it gets in the market as a contributory value.

Generic public or non appraiser use of the words opinions or estimates as the same or interchangeable is not the same as appraisal specific use of an opinion or estimate.

 

[residentialguy]

Any time I give a cost to cure, I clearly state; "appraiser is not a (plumber, painter, carpenter, or whatever is involved) And that this is an estimate only, actual cost may vary. If actual cost is different, I reserve the right to change this appraisal".

Pretty much the definition of an extraordinary assumption. Do you check the EA box when stating that? Or did you change the pre-printed Certs?

 

[J Grant]

How can an estimate be anything other than an opinion, J? It's not a fact, and it's not generated by a machine. How is an estimate not an opinion of how much it will cost to cure the problem? This really is a simple concept.

Nothing limits an estimate to being made by a machine. It is typically understood to be a rough idea of a series of facts , facts such as labor $ per hour charge of cost list of materials- called an estimate because it did not happen yet, the actual costs and labor at end of project might differ from the estimate.

 

[Mark K]

Well, it's a FACT that it's the contractor's ESTIMATE (or opinion). The estimate/opinion doesn't become fact until the work is performed - at which time, you know the true cost (fact).

A contractors Bid or written Estimate is a FACT. They can be held legally liable to this Bid for the cost of the work. That's a FACT.

Its a fact that this thread has wandered so far off into the giggleweeds (as usual) that its time to move on. OK, maybe it just my opinion but its the correct opinion.

 

[alebrewer]

A contractors Bid or written Estimate is a FACT.

Agreed - it is your opinion. Just like a contractor's bid is his/her 'opinion' of what the true costs will be. And while they can be contractually bound to their estimate (definition of estimate below), it still is an ESTIMATE. That's why I said it's a FACT that it is the contractor's ESTIMATE. Unless you're saying the contractor is so good he/she knows what the ACTUAL cost will be before he even does the work - in which case, he has a leg up on the rest of the repair world.

Definition of estimate: "an approximate calculation or judgment of the value, number, quantity, or extent of something."

 

[Terrel L. Shields]

getting an adjustment from other sales,

Extracting a cheap repair is like trying to extract for the difference in carpet vs hardwood or extracting the difference in a gas log fireplace and a wood fireplace. TSTM - too small to measure.

 

[alebrewer]

Extracting a cheap repair is like trying to extract for the difference in carpet vs hardwood or extracting the difference in a gas log fireplace and a wood fireplace. TSTM - too small to measure.

Agreed. For me, it's more of a conceptual difference. I don't like using 'costs' in an SCA grid, as that should be reserved for market reactions. To your point, though, if a repair is minor, the market reaction probably isn't much different than the cost. I just wouldn't personally call it a 'CTC' in the grid - I'd call it functional inadequacy, 'non-functional bathroom', or something similar. To each his own, though. I'm not the appraisal police.

 

[residentialguy]

Seriously guys, the lender is trying to tell you how to adjust your comps? You do know that lenders are not allowed to do that, right? Who's the appraiser here?

 

[ShortSeller]

Couldn't he request the report to be a 'subject-to' , then finish once the bathroom renovation is complete? Including a non functioning bathroom in the room count as a working bathroom would be misleading if it's an 'as-is' appraisal. Also, maybe he could try and get the bill of sale for the materials from the homeowner if they are the ones doing the renovation.

 

[Mike Ault]

How can an estimate be anything other than an opinion, J? It's not a fact, and it's not generated by a machine. How is an estimate not an opinion of how much it will cost to cure the problem? This really is a simple concept.

In my appraisal it would be a FACT that the "estimate from contractor states cost to cure is $XX.XX". It would NOT be a FACT that MARKET REACTION to the deferred maintenance would be EQUIVALENT to that estimate.