Easiest And Best Cost Approach Data

[Mike Garrett RAA]

Marshall Swift! I do from 6 to 10 new constuction assignments for the VA and have gathered extensive builders cost data. Have been tracking about a dozen builders for five years now. It is necessary to adjust the cost book for local costs. Most of our new construction is average grade.

 

[Terrel L. Shields]

The easiest is what 95% of the appraisers out there are doing, just make up whatever numbers you need to back into the cost approach,

I wish there was not a lot of truth in what you said......


ps - like your avitar

 

[Restrain]

The most accurate method is to take the sales of new homes in your own market, extract land, etc., and figure out what the actual costs (including profit, etc) actually are. I use the M&S form for new FHA construction and invariably they are high by 8-10%.

Roger

 

[EDWARD BERRY]

RS,

How close are they by dropping DOWN one grade?

Arkie-ed

 

[Bill Rose]

Dataquick has a "Replacement Cost Calculator". It's an automated Marshall & Swift. Costs $5.00 a report. I use it frequently. Also, I have a professional construction cost estimator on my staff. I frequently ask him to validate the values.

 

[Jeff Horton]

I like Marshall and Swifts CD. It's fast and easy and you can print out the report and include it in you report. Confussed some underwritters however when you don't fill out the cost blocks. Even with "SEE ATTACHED ADDENDA" doesn't seem to make some understand.

My only complaint is that it doesn't have any provisions for anything out of the ordinary. Boathouses, barns, etc. If you do molsty cookie cutter homes you will love it. Just enter the data about the house and it does the rest.