"Income Approach" no longer acceptable terminology?

[Roger Murdock]

Good one!!

 

[Fred]

I'd say that's a recurring problem. There are way too many floating around who confuse nitpicking vocabulary with expertise. How many of these threads to we have? Excess vs. surplus land, rather than what are the relevant characteristics of the property and how to deal with them.

The most obvious example is one can use a multiplier (inverse of cap rate) to arrive at the same result. In that case, "Income Capitalization Approach" would be inappropriate.
That's what I was thinking David, I don't always use the Capitalization method... sometimes we use the Discounted Cash Flow,

If you start out with income and end up with value as a capital sum, that's what we call capitalization.

BTW, there actually is no logical reason to limit the term capitalization to income. On Wall Street they multiply the price per share times the number of shares and call that - guess what - capitalization. Go ahead. Try to convince someone we know more about financial analysis than Wall Street.

 

[PL1957]

Go ahead. Try to convince someone we know more about financial analysis than Wall Street.

That statement would have sounded a lot better BEFORE the mortgage meltdowns ...

 

[CANative]

I'd say that's a recurring problem. There are way too many floating around who confuse nitpicking vocabulary with expertise.

Ahh.. ummm... nevermind. It would be better if I just did not say anything. Steve.

 

[Roger Murdock]

I'd say that's a recurring problem. There are way too many floating around who confuse nitpicking vocabulary with expertise. How many of these threads to we have? Excess vs. surplus land, rather than what are the relevant characteristics of the property and how to deal with them.

I could be wrong but I think "excess land" refers to a portion of land that could potentially be separated from the main building lot area and sold as a separate building lot, while "surplus land" refers to the condition of a building being on a larger-than-typical lot, but not having the potential for any of the "extra" land area to be separately apportioned, due to legal restrictions and/or physical limitations. I could have them reversed, or I could even be making this all up....

 

[Fred]

That statement would have sounded a lot better BEFORE the mortgage meltdowns ...

If you are are right, then maybe we'd only lose by 7 touchdowns instead of 8. Then again, watching appraisers try to blame someone else for the mortgage meltdown would be like watching Gary Hart argue "Monkey Business" was just a T-shirt.

It would be better if I just did not say anything. Steve.

Better for you.

I could be wrong but I think "excess land" refers to a portion of land that could potentially be separated from the main building lot area and sold as a separate building lot, while "surplus land" refers

And then again, maybe income approach refers to... while income capitalilzation approach refers to something completely different.

 

[PropertyEconomics]

Ahh.. ummm... nevermind. It would be better if I just did not say anything. Steve.

Oh God .... that is hilarious.

 

[Farm Gal]

Yeah - NRU rooles applied -:new_snipersmilie: Nit-pickin Reviewers United

I also 'bin told' that the MARKET approach is correct... and that Sales Comparison is not. Another Reviewer said to use Sales Comparison in place of Market:Eyecrazy:

feh. I'll go with what ever I find in USPAP or feel like writing at any given moment.

 

[Michigan CG]

while we are at it add in the terms Economic Obsolescence and External Obsolescence to the debate.