Economic obsolescence

[SANDY]

Did you ask the question to gain a knowledgeable answer or did you just ask it to elicit an argument? It seems the latter may be the case. If so I have to agree with CAN

I would like to know you all do when faced with the scenario.

 

[KD247]

I had plenty of recent land sales and plenty of bubble land sales-no brainer to calculate economic obsolescence attributable to site value. ...

You might want to take a step back and think through your assumptions. Economic obsolescence can affect a site's value, or can be measured in terms of a change in land values, but economic obsolescence is never attributable to (caused by) a site's value.

A change in site value can be attributed to economic obsolescence, but a change involves estimating value at two or more different times. Which site value do you plan on entering onto the form, the site value before, after, or during the change?

 

[SANDY]

Sorry, I keep forgetting that you don't read English. No, non, nyet, nee, ne, iie, nope, naw

Read my post answer-I asked you to answer me on whether you actually do a time adjustment on your site value which was what you were insinuating in your comments right above my inserted blue comments.

Cmon ya gotta bring a better game than that to play with me.

I am beginning to wonder if some of these other states hand out certifications to anybody that can sign their own name correctly.

 

[SANDY]

Well,

Crickets chirping must be the answers.


Still waiting.


.

Bullies always run when someone stands up to them!:icon_lol:

 

[SANDY]

Instead of talking down to people and trying to be less combative you might get some useful thoughts. Your posts do not inspire many to contribute.

Yes or no?

 

[Meandering]

Bullies always run when someone stands up to them!:icon_lol:

I'm not trying to bully you, just trying to answer your elusive question.

You make statements about your conclusions and then ask how would we handle it, but you refuse to enlighten us as to how you arrived at your conclusions, in whole, but have only given us part of the information, which was how you determined your site value. There is no way for us to tell you where or how to apply a discount for economic obsolescence that may or may not be attributable to the improvements until you explain how you arrived at the cost new of the improvements and the depreciation you are applying and the current condition of the market were your subject is, and if there are new homes being constructed and if any new homes are competition for your existing subject.

So without complete information, no one can answer your question.


.

 

[SANDY]

"famous" appraisers?

Question- Do you include in your CA a specific number for Economic obsolescence or not?

I would never expect it it be a "specfic" number as each and every property and their respective market has its own unique attributes. If you do a proper cost approach with proper lot sales and proper physical depreciation, then the EO would be abstracted from the difference in cost approach and the adjusted opinion of value of sales. Different properties would require different numbers. Homes with pools, smaller homes, larger homes, etc all might have varying effects of EO. Up north, some say pools give no extra value. The smallest home in the subdivision may need less EO, the largest might require more. What if a certain style of home is now obsolete. There is never any one yes or no answer to just about anything when it comes to arriving at an opinion of value. That is why don't arrive at the same opinion of value on every property as every appraiser.

Nice try at a dodge to a yes or no question. I didn't ask if you use a specific number that was the same all the time for similar properties.

Yes or no given the scenrio? What is so hard about the question that you can't answer yes or no?

 

[23Degrees]

OK - I'll bite:

If - all of your original parameters were in place

If - I had adequate land sales to produce a credible opinion of site value

If - I had new construction (not our subject) in the neighborhood that I could use to reliably account for the market value effect of physical depreciation on our subject (see other thread) -

If - I believed the M and S was the least bit accurate (and maybe I do - not poking sticks here) or had reliable cost information from builders that were not yanking my chain

Then - if there was a difference between my opined market value and the value derived from the cost approach I would put in place a separate figure for the economic obsolescence that is represented by that difference. Or if it was a positive figure I'd label it economic incentive.

If one or more of the above do not apply then my direct answer to your question would be no - and if questioned about EO I'd indicate that it is accounted for in the land value.

 

[SANDY]

You might want to take a step back and think through your assumptions. Economic obsolescence can affect a site's value, or can be measured in terms of a change in land values, but economic obsolescence is never attributable to (caused by) a site's value.

A change in site value can be attributed to economic obsolescence, but a change involves estimating value at two or more different times. Which site value do you plan on entering onto the form, the site value before, after, or during the change?

Aye yi yi Let me see- that's a tough one mmmmmmmmmmmmmmmmmmmmmmm The site value before the change?:new_all_coholic: eh eh there ya go boys and girls jump on that one.

Knowing how thick some of you are I better say right now-it's a joke son!

 

[SANDY]

OK - I'll bite:

If - all of your original parameters were in place

If - I had adequate land sales to produce a credible opinion of site value

If - I had new construction (not our subject) in the neighborhood that I could use to reliably account for the market value effect of physical depreciation on our subject (see other thread) -

If - I believed the M and S was the least bit accurate (and maybe I do - not poking sticks here) or had reliable cost information from builders that were not yanking my chain

Then - if there was a difference between my opined market value and the value derived from the cost approach I would put in place a separate figure for the economic obsolescence that is represented by that difference. Or if it was a positive figure I'd label it economic incentive.

If one or more of the above do not apply then my direct answer to your question would be no - and if questioned about EO I'd indicate that it is accounted for in the land value.[/QUOTE

Yeah yeah-thank you! Indulge me one more answer-given your scenario how many appraisers would you guess/estimate would put the EO number in their CA and how many would leave it out and let the sca and ca be significantly different?