Reconciliation of Approaches

[Mr Rex]

Why consider applicable? It says "when necessary for credible assignment results", which implies relevant.

 

[CANative]

Why consider applicable? It says "when necessary for credible assignment results", which implies relevant.

No it doesn't imply anything. It states "when necessary." Something can be relevant and still not be necessary. That's what departure was all about.

 

[Mr Rex]

"necessary for credible assignment results" = relevant to assignment results. What is this ancient term Departure you refer to?

 

[CANative]

"necessary for credible assignment results" = relevant to assignment results.

Is the cost approach relevant to developing MV indications for new construction single family residential property? Yes. Is it necessary? No.

An appraiser can omit a relevant approach as long as the approach is not necessary.

 

[Mr Rex]

Is the cost approach relevant to developing MV indications for new construction single family residential property? Yes. Is it necessary? No.

Sure it is, when was the last new construction assignment that you got that the Cost Approach was not required?

(necessary to get paid)

FWIW, the CA is not relevant to MV today given the External Obsolescence due to the over-supply/weak economy etc

 

[CANative]

Sure it is, when was the last new construction assignment that you got that the Cost Approach was not required?

(necessary to get paid)

FWIW, the CA is not relevant to MV today given the External Obsolescence due to the over-supply/weak economy etc

Not all assignments are for lenders and AMCs.

Relevant or not, the CA can still be applied successfully.

 

[Mr Rex]

Can be applied is not the question. You even admit the CA is not necessary for MV for new construction. So unless its an assignment condition, its not really relevant today. Of course it could be an assignment condition to quantify the EO.

I can apply sun tan lotion when its raining outside.

 

[CANative]

Can be applied is not the question.

It IS the question. The argument is about stating in the reconciliation that the approach is not applicable. If the approach CAN be applied then it is applicable.

 

[Mr Rex]

No, you made it about applicable when you narrowed applicable to your definition. One of the definitons is relevant, which just so happens to jive with the current verbiage in USPAP, "necessary for credible assignment results". Applicable per your narrow definition of capable of being applied is not relevant to this verbiage. It is not applicable.

 

[CANative]

You're guilty of dangerously trimming the scope of work by including "relevant" in the definition. Client says they don't need an income approach on an office building? Must mean that it is not relevant so it must not be applicable.

I need Hatch or Heyn to tell me I'm wrong before I'll change my position.