D
Deleted member 134708
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@J Grant
My thing about valuing new construction off existing homes is this, say new construction for 2,800 GLA homes going for ~$500k, multiple builders. Existing going for ~$450k. You value this new construction at $480k. I'm 100% fine with that, but here is the rub: find me a builder willing to sell me a replacement 2,800 GLA model new construction for $480k and I'm 100% with you, the problem is all new construction going for $500k, there is no market at $480k for a 2,800 GLA new. If you cannot find me a replacement new for $480k, then your appraisal at $480k is not accurate.
I totaled a car once. They have mini appraisal software and have a tiny sales grid like we do for homes. They appraised my car for $15k and going to write check for that. They do adjustment for miles, yr etc like we do. The problem was, I went on Autotrader and local dealers and could not find a replacement car (same yr/miles/color for $15k, they were all about $20k. So I told the insurance company, find me a replacement car for $15k and I'll agree, they couldn't. They ended up adjusting to $20k.
Apple stock is trading for $98 a share. You appraise AAPL's balance sheet and think its value is $75. That's perfectly fine, I would like to purchase some at $75, find me some at that price. You cannot delivery on your opinion, why? Because there is no willing seller at that price, you cannot replace my AAPl stock for $75, its value is $98.
My thing about valuing new construction off existing homes is this, say new construction for 2,800 GLA homes going for ~$500k, multiple builders. Existing going for ~$450k. You value this new construction at $480k. I'm 100% fine with that, but here is the rub: find me a builder willing to sell me a replacement 2,800 GLA model new construction for $480k and I'm 100% with you, the problem is all new construction going for $500k, there is no market at $480k for a 2,800 GLA new. If you cannot find me a replacement new for $480k, then your appraisal at $480k is not accurate.
I totaled a car once. They have mini appraisal software and have a tiny sales grid like we do for homes. They appraised my car for $15k and going to write check for that. They do adjustment for miles, yr etc like we do. The problem was, I went on Autotrader and local dealers and could not find a replacement car (same yr/miles/color for $15k, they were all about $20k. So I told the insurance company, find me a replacement car for $15k and I'll agree, they couldn't. They ended up adjusting to $20k.
Apple stock is trading for $98 a share. You appraise AAPL's balance sheet and think its value is $75. That's perfectly fine, I would like to purchase some at $75, find me some at that price. You cannot delivery on your opinion, why? Because there is no willing seller at that price, you cannot replace my AAPl stock for $75, its value is $98.
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