Extraction Method

[Deleted member 152047]

Typical in such situations; however, we are also dealing with different property interests. If Cost is further adjusted for property interest valued, it will be more consistent with other approaches.

That's a tough one when you have credit tenants compressing capitalization rates.

 

[George Hatch]

I positively despise the use of the term "accurate" by appraisers in reference to any valuation opinions they are developing. Facts can be accurate. Opinions are generally referred to as reasonable.

Accurate is the result of a reporter notes or a calculation does. Reasonable is the result of what person who is engaged in reasoning does.

 

[George Hatch]

Typical in such situations; however, we are also dealing with different property interests. If Cost is further adjusted for property interest valued, it will be more consistent with other approaches.

I prefer not to project my opinion of what someone else may or may not be doing, but since you have:

My supported professional reason for not completing the cost approach is because I do not think that it is necessary for credible results - something I'd hope you'd not take issue with, but if you do, it in no way affects my opinion.

Where did you get that I believe the form says I can skip it? I've never said that. What I said is that Cert 4 states that I have developed my opinion of the market value of the real property that is the subject of this report based on the sales comparison approach to value.

As an instructor, I certainly would offer my opinion in a classroom environment, but would also welcome - and not judge - those with differing opinions.

And I don't think I've EVER, nor will I EVER, state(d) that I am an 'authoritative' USPAP instructor. Aside from being a poor choice of words (as authoritative can also mean 'commanding'), I'd certainly not consider myself an authority on USPAP. I am, however, an AQB Certified USPAP instructor.

When I took that course they went to fairly extreme lengths to make the point that it's important for instructors to stick to the script and to not read things into the material that aren't there. It was a make/break for passing that course, and a make/break for retaining the certification. That's why I'm a bit surprised at the creativity you're using with the Fannie materials.

 

[BRCJR]

Big - and when I say big, I mean REALLY BIG. And they're GREAT. I don't mean just ok great, but REALLY great. The best I've ever seen...

So you don't know the asset size of the bank you work for?

 

[alebrewer]

The income approach is not credible for properties that are not producing an income stream. A valid reason to exclude. It may not be credible once completed due to lacking or poor data, but you don't know that until you research and test the theory.

Why would the income approach not be credible just because a property is not income producing?

 

[alebrewer]

When I took that course they went to fairly extreme lengths to make the point that it's important for instructors to stick to the script and to not read things into the material that aren't there. It was a make/break for passing that course, and a make/break for retaining the certification. That's why I'm a bit surprised at the creativity you're using with the Fannie materials.

If you're talking about the USPAP course, you're exactly right. They want you to use the examples in the text and nothing else. My statement was just a general statement about no particular class...

 

[alebrewer]

So you don't know the asset size of the bank you work for?

I do, and I already told you: Big - and when I say big, I mean REALLY BIG. And they're GREAT. I don't mean just ok great, but REALLY great. The best I've ever seen...

 

[Zephyr999]

Why would the income approach not be credible just because a property is not income producing?

I think you already know the answer to this question...hopefully.

 

[alebrewer]

I positively despise the use of the term "accurate" by appraisers in reference to any valuation opinions they are developing. Facts can be accurate. Opinions are generally referred to as reasonable.

Accurate is the result of a reporter notes or a calculation does. Reasonable is the result of what person who is engaged in reasoning does.

I absolutely agree. The reason I used the term is to point out the obvious - that an appraiser simply cannot account for every nuance that goes into a purchase transaction.

 

[CANative]

^ lol