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FHA Stipulation: 4-plex Remaining Econ Life

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ZZGAMAZZ

Elite Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
MB client just calls to notify me that the field review of a 45-year-old 4-plex in average condition for a FHA insured loan came back with a 25 year remaining economic life that I am being asked to rebut.

I presume that it's a typo on the part of the review appraisal but I have no way of communicating with the review appraiser or the D.E.U.

I developed the Cost Approach in order to include an opinion of site value and remaning economic age, which was 32 years in my opinion.

Do I include a perspective of the potential fallacy of the remaning economic life concept, debunk it as being largely subjective, or describe the concept by quoting from reference sources?

I hate to waste time and this could be an endless, futile debate...
 

Thomas Fiehler

Senior Member
Joined
Jun 2, 2003
Professional Status
Certified General Appraiser
State
Ohio
ZZ-The REL is a calculated guess at best. I would hate to try to defend one, especially if I have not viewed the interior of the subject. I would ask how the reviewer arrived at that number and on what did they base it.
 
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