Review question about cost approach

[Lawrence R.]

And the right way for site improvements is? (See below).

I don't know. You have any comps for site improvements?

See, this was where I was going...I like the way you think(today) Steve!:new_smile-l:

 

[Fred]

See, this was where I was going...I like the way you think(today) Steve!:new_smile-l:

I think like that every day.

 

[Fred]

Steve... You're too smart to be quibbling over form trivia. The form asks for the opinion of the "As is" value of the site improvements. This is the last line of the little box that starts out with site value, RCN of the dwelling, depreciation, etc. until it calculates the inputs and ends in a number that is supposedly a market value indicator. There are no specific instruction on what this figure is supposed to be but most are of the opinion that it is what might be left over after a tidal wave, i.e. perhaps things like the encroachment from the street, well and septic, utility meters, and who really knows. It is an add on after site value and depreciation on the other improvements. I never know what exactly they want and I just put in "included above" so I don't have anyone pestering me over it.

My point is that if the appraiser puts something down it needs to be explained because that is the SOW for a Fannie/Freddie/FHA cost approach.

Is it trivia? You said the approach be to be something that can be replicated. OK. It's a simple question - can you cite any recognized method or technique that I can replicate for value (or is that contributory value) of site improvements.