Lender Wants Cost Information

[Tom4value]

I need a more simple way to explain it, that even a loan pr0cessor would understand

This is in all of my reports:

"Cost figures provided in the Cost Approach are intended to develop the Cost Approach only. They are not intended to be used for any other purpose including but not limited to insurance purposes."

Dumbest LO would understand this.

 

[KYLECODY]

Dumbest LO would understand this.

You're giving them way too much credit.

 

[Dublin ohio]

Dumbest LO would understand this

An appraiser once told me "Always write your report so a total idiot on the other side of the world can understand it". That was even before offshoring was even in the picture.

 

[George Hatch]

The problem isn't what they do/don't understand; the problem is that they want something regardless of what you intended to do.

 

[Don Clark]

I need a more simple way to explain it, that even a loan pr0cessor would understand

VA does not reaquire te cost approach, deven on new construction, 95% or by plans & Specs. It is not applicable to the assignment and not required by the scope of work.

 

[Elliott]

I'd refer them to the comment in my addendum that says,

"The use of this data, in whole or in part, for other purposes is not intended by the appraiser. Nothing set forth in the appraisal should be relied upon for the purpose of determining the amount or type of insurance coverage to be placed on the subject property. The appraiser assumes no liability for and does not guarantee that any insurable value estimate inferred from this report will result in the subject property being fully insured for any loss that may be sustained. The appraiser strongly recommends that an insurance professional be consulted to determine the proper amount of insurance. It has been the appraiser's experience that cost data varies widely in the local market because of changing costs of labor, cost of materials, changing building codes, and changing governmental regulations."

 

[Mike Garrett RAA]

And people in hell want ice water!