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Recognized Appraisal Methodology

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Terrel L. Shields

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update the "recognized" appraisal methodology

In another thread, @fcrecords suggests updating them. So what would that look like? I've always assumed, as an opinion, it would be based, like law, on the construct of regulation (USPAP) interpreted by the past history of text, research and published methodologies (like "case law") that have been created before and found acceptable to our peers. This doesn't mean arbitrary one size fits all, rather various publications from recent past tend to build upon the old masters with new interpretation. The accepted thrive, old ideas evolve or fall by the wayside.
 

A K

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I don't think he was actually talking about appraisal methodology but was talking about the GSE guidelines.
 

A K

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When I think appraisals methodology I think the three approaches to value. I don't think there is anything wrong with the approaches to value.
 

hastalavista

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I took his comment not so much to throw away what exists, but rather how some interpret what exists needs to be updated (bracketing, specifically, for example).

Other than computing-power allowing the ability for the common appraiser to do something that requires significant calculations (a DCF, for example), what fundamental principles of real estate economics have changed over the last 100 years that would impact one of the recognized methodologies?
Alternatively, what condition exists that cannot be addressed by the existing and recognized methodologies?

I'd like to hear what's new under the sun if someone can point it out to me.

(Wasn't there some article not too long ago on this forum? A so-called 4th approach to value?)
 
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Terrel L. Shields

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so-called 4th approach to value?
Actually I think Ratcliff or Babcock had 7 approaches. But most were variation of income methods. I believe a 4th approach was once regarded as being a historical approach based on prior sales adjusted for time.

I was interpreting this more as to an updating of research methods as well as approaches...and perhaps suggesting the cost approach be eliminated altogether which is certainly not my idea.
 

A K

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If you sit down on the curb and ask yourself what you would pay for it, you would ask yourself..

1) What do other similar properties sell for?
2). What would it cost to build my own?
3). How much income can I get from it?

:)
 

residentialguy

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If you sit down on the curb and ask yourself what you would pay for it, you would ask yourself..

1) What do other similar properties sell for?
2). What would it cost to build my own?
3). How much income can I get from it?

:)
Today, many appraisers would have to ask their runners what they thought when they sat on the curb
 

jay trotta

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If I sit down on the curb;
1) Location - similar
2) Location - condition
3) Location - Prime
 
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