How would you do this?

[Zoe]

Instead of one big bear trap of an appraisal, it's gonna be a lot of little ones for the state to nail you, and then do some finishing work on your livelihood.
And the cost for doing the costs wrong.

Terrel is relying on experts for cost estimates. It is not off the top of Terrel's head. He can estimate effective age and do depreciated cost estimate as an indicator of MV.

 

[Terrel L. Shields]

All the appraiser did was state the as-is value of the subject

I would support that value with either sales or cost or both...maybe even income if it is a rental property.

 

[Mark K]

For the purposes of valuation an appraiser doesn't need to get into counting nails and floor tiles. They're not bidding the job. They're just trying to figure out where in the process the "as is" hits. I generally use the Calif State Board of Equalization cost handbook because it's a state publication, the county assessors are using it and nobody is going to challenge its legitimacy.

https://www.boe.ca.gov/proptaxes/ah531.htm

Unless things have changed most cost guides and references I've seen in the past include a table somewhere which lays out the percentages of costs for the various systems. Like this one:

View attachment 100193

I had a similar sheet I used for new construction draws. Its pretty accurate and could be used for this instance. Find the % complete, add in the site value, then, for this case, I'd knock off 10-15% for the as-is value. If its a relatively good quality construction up to this point I'd bet that a local builder would jump on the chance to finish it off and make some quick $$ as a spec home, assuming the local market is good for that price range home.

 

[Zoe]

I would support that value with either sales or cost or both...maybe even income if it is a rental property.

yes Sir. MV is very unique in value definition. MV gives more flexibility.

 

[Zoe]

MV definition is also only value definition as far as I know that requires H&B use analysis both "as is" and "as improved".

 

[George Hatch]

Teaching them how is above and beyond my scope of work... but, sometimes that is how it goes. At this point, I'm looking for them to tell me how they arrived at the number they reported.

Above and beyond is certainly true.

My approach differs depending on how often I expect to see the same appraiser's work. If it's just a one-off you can't really build a relationship with the appraiser and probably most of them are going to treat it as an adversarial experience instead of a collaborative experience. But if I know I'm going to see them again then I think it's to my own interests (and my client's interest) to explain a little more and if necessary show them how so as to save myself and my client the repeat experience.

I like appraisers and I enjoy reviewing reports that are reasonable. Reviewing (and writing) for good work goes way faster and easier than reviewing junk. I don't like going back and forth with appraisers over a list of avoidable deficiencies.

A lot of appraisers don't realize the point that it's in their own best interests to refine their workproduct if/when being given some advice. There is no upside to having an problem appraisal report with their name on it floating around out there. Faster for them and for all concerned to get it within reason from the outset than to take their chances on getting called on their shortcuts and having to go back to that file again at the last minute when everyone's hair is on fire to close that loan or commit to that decision. I want everyone to thrive as best they can in these difficult times.

 

[Zoe]

@DWiley said he had to do many in the last mortgage crisis. Listen to him and @Terrel L. Shields . They know about cost approach, income cap approach and sales comparison approach. They know the definition of MV.

I am almost certain this client requested MV definition in the appraisal.