Leased Fee Interest And The Cost Approach

[Michael P Jacobs MAI]

<snip>The client specifically asked me to develop the Cost Approach, even though it is not applicable...

Great answers here so far but I have found, 90% of the time, that when a lender asks for this they are really asking for insurable value. It can also be land value they are looking for, or both, but they might not specifically want a cost approach. It can even be a legacy request they forgot to delete from the engagement letter. A question like this should be answered right away by a phone call or e-mail... preferably a phone call.

 

[Deleted member 152047]

I agree Michael, typically these requests are buried in an old LOE template. This lender put it front and center on the first page and I confirmed that they want it. I think it is for a market survey that they produce and sell.