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Extraction Method

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George Hatch said:
I didn't say it was. I didn't imply it was. That's something you are spinning in your attempt to defend your no-look default.

Lookit, I get it - your employers are institutionalized and they want their widgets, and that's completely fine for them - and by extension for you when you're working for them. But they don't define the entire extent of what is an appraisal or what appraisers do. If you never do land appraisals then you're in no position to say what can and can't be done in one of those assignments or even what kinds of sales are and aren't comparable. If you never work for those types of clients then you have no clue what they do and don't consider to be meaningful for such appraisal problems.

If you got an assignment to appraise a vacant lot, would you decline that assignment or would you proceed to work the problem? I'm thinking you'd proceed to work the problem and that you'd figure it out.
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You really don't have a clue do you? The fact that someone is competent to perform extraction by no means means they are a 'no look default' appraiser that doesn't understand site valuation via sales comparison analysis. In fact, I'd submit that site valuation by sales comparison is MUCH easier than extraction - easier to understand, easier to perform, and easier to defend.

I don't know why you insist on dreaming up this idea that, if someone performs extraction, it means they don't understand site valuation - that's just inane. Please stop. We've talked before about you projecting what you want to believe about others, and not what is actually true about others. (a) I never said I don't do site valuation by sales comparison - that is ALWAYS the 'go to' approach when site sales are available; (b) I never said I don't do land appraisals - I live in a pretty rural area - land appraisals are part of the landscape; (c) local banks do a TON of land appraisal assignments - and local banks are prominent around my area - thus I've had MANY of 'those types of clients' over the years. That said, there is really no reason I should have to defend my credentials to you and your condescending blather.

As to your question - it doesn't even merit response. In fact, you're one of the folks that is bordering on not meriting any response from me at all - and that's a really small group of people - currently only one, but soon to be two.
 
alebrewer said:
You really don't have a clue do you? The fact that someone is competent to perform extraction by no means means they are a 'no look default' appraiser that doesn't understand site valuation via sales comparison analysis. In fact, I'd submit that site valuation by sales comparison is MUCH easier than extraction - easier to understand, easier to perform, and easier to defend.

I don't know why you insist on dreaming up this idea that, if someone performs extraction, it means they don't understand site valuation - that's just inane. Please stop. We've talked before about you projecting what you want to believe about others, and not what is actually true about others. (a) I never said I don't do site valuation by sales comparison - that is ALWAYS the 'go to' approach when site sales are available; (b) I never said I don't do land appraisals - I live in a pretty rural area - land appraisals are part of the landscape; (c) local banks do a TON of land appraisal assignments - and local banks are prominent around my area - thus I've had MANY of 'those types of clients' over the years. That said, there is really no reason I should have to defend my credentials to you and your condescending blather.

As to your question - it doesn't even merit response. In fact, you're one of the folks that is bordering on not meriting any response from me at all - and that's a really small group of people - currently only one, but soon to be two.
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I am not critical of (actually) doing extraction when there are no other alternatives. I don't know where you got that. I'm just saying that I have seen MANY appraisers default to that without even looking for land sales. Even when the terms of their assignment explicitly dictate otherwise. And yes, I consider looking for and using land sales to always be superior to extraction when they're available. I will NEVER use extraction in lieu of direct comparables in a land valuation. It's a last resort, not a default.
 
George Hatch said:
I am not critical of (actually) doing extraction when there are no other alternatives. I don't know where you got that. I'm just saying that I have seen MANY appraisers default to that without even looking for land sales. Even when the terms of their assignment explicitly dictate otherwise. And yes, I consider looking for and using land sales to always be superior to extraction when they're available. I will NEVER use extraction in lieu of direct comparables in a land valuation. It's a last resort, not a default.
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Again, all RE is local. Do not just assume that what works for you out in CA might work for everyone else. There ARE, in fact, areas in my world where there are no COMPARABLE site sales. In which case, extraction IS an acceptable method of site valuation. That is, unless you honestly think you know more than the authors of The Appraisal of Real Estate? Which wouldn't surprise me...
 
alebrewer said:
Then you must be a master at it.
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For what it's worth from third-party perspective I think you & George are both outstanding, well-informed appraisers and I enjoy reading both of your opinions immensely. Consider this one vote or not putting each other on ignore.
 
alebrewer said:
Again, all RE is local. Do not just assume that what works for you out in CA might work for everyone else. There ARE, in fact, areas in my world where there are no COMPARABLE site sales. In which case, extraction IS an acceptable method of site valuation. That is, unless you honestly think you know more than the authors of The Appraisal of Real Estate? Which wouldn't surprise me...
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I don't think George is arguing that it is not valid, just that sometimes an appraiser uses it as an "easy out" of doing market research. I have worked in many rural areas of Texas where sales or leases do not exist, so I get where you are coming from.

That said, when I bought my home, the appraiser used the extraction method to determine the land value when land sales were bountiful.....so that it the other end of the spectrum.
 
NP_MAI said:
I don't think George is arguing that it is not valid, just that sometimes an appraiser uses it as an "easy out" of doing market research. I have worked in many rural areas of Texas where sales or leases do not exist, so I get where you are coming from.

That said, when I bought my home, the appraiser used the extraction method to determine the land value when land sales were bountiful.....so that it the other end of the spectrum.
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What he's arguing is that folks that use extraction are somehow not capable of performing SCA for site valuation. Being from CA, where he has full disclosure on sales prices, I'm sure it's MUCH easier to do a site valuation via SCA than here, but unless the site sales are on MLS, you just don't have the data - and that's the case more often than not in suburban markets in Texas.

I have no doubt there are folks who 'say' they used extraction - or even worse - folks who 'say' they use allocation. Just as there are folks who 'say' they used vacant site sales - when in reality, they did neither of the three. They simply pulled a number that confirmed the value reached in the SCA. Which is yet another reason I don't like the CA. :giggle:
 
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