The Cost Approach - North Carolina

[ucbruin]

Did this appraiser receive a stip requiring the CA to be completed?

And has anyone ever had their completed CA questioned by anyone in the review process?

 

[CraigAVC]

Did this appraiser receive a stip requiring the CA to be completed?

And has anyone ever had their completed CA questioned by anyone in the review process?

The engagement letter in this instance requires the cost approach. In my tenure as an Appraiser, I can't personally recall a time when my cost approach was ever challenged.

 

[George Hatch]

Bust a deal - face the wheel.

 

[Michigan CG]

I doubt anyone said the cost approach is never reliable. Maybe that is what he thinks he heard but surely there is no state board member that, um, uninformed.

While many may not do a cost approach well it is still a check on the SCA. I doubt I would keep such a person on my panel if they don't understand basic appraisal concepts.

 

[Renee Healion]

File that quote under "nice try"
The CA is the location for some strange assertions and impossible to replicate numbers but I don't think I have seen one where the appraiser dished a claim off on another.

 

[ramrcdk]

New construction assignment in North Carolina. Client requires the cost approach on every SFR. This review on my desk comes with a minimum land value, and a blank C.A. In the comments on the cost approach section is the following remark:

"The Cost Approach was not developed due to the recommendation to the appraiser by members of the North Carolina Appraisal Board. The members of the appraisal board informed the appraiser that the Cost
Approach is considered unreliable. The appraiser was strongly encouraged not to attempt to calculate the Cost Approach to value."

The story I got from the appraiser, was that he had been in C.E and a member of the board was in class and made a declaration. This was supposedly not an official statement from the N.C. Appraisal Board.

Has anyone else run into this, or do this? I'd like to gather some local knowledge. Thanks everyone.

HAHAhahhaaaaaaa Yep I am SURE our NC board would NEVER say ...just avoid USPAP and don't ever use one of the 3 named approaches to value. WHAT a stupid FOOL !!! A valid reason would be almost ANYTHING other than that! OMGosh NCAB: Roberta has retired BUT Tim is very very nice...and listens well. Call and ask him....please. IF IF IF the NCAB said that ...IT would need to be published. Minimum: This guy needs a CE tap on the brain, the 15 hour one.

EDIT: For some reason this has just crawled under my skin... re-read your post. WHEN almost never...would you NOT use the CA IN NEW CONSTRUCTION. %99.99999999 to 100% OR their best be some CASE specific reasons.

 

[EddieB]

Tell the appraiser that you have decided to send a copy to the NCAB for clarification. See how strong his conviction

 

[ramrcdk]

Tell the appraiser that you have decided to send a copy to the NCAB for clarification. See how strong his conviction

AND...OR that you simply call the board for clarification because you have never heard of such a _________ by an appraisal board = due diligence.

 

[Michigan CG]

Tell the appraiser that you have decided to send a copy to the NCAB for clarification. See how strong his conviction

^^^^^^^^^^^^^^This^^^^^^^^^^^^^^^^

 

[Carnivore]

New construction assignment in North Carolina. Client requires the cost approach on every SFR. This review on my desk comes with a minimum land value, and a blank C.A. In the comments on the cost approach section is the following remark:

"The Cost Approach was not developed due to the recommendation to the appraiser by members of the North Carolina Appraisal Board. The members of the appraisal board informed the appraiser that the Cost
Approach is considered unreliable. The appraiser was strongly encouraged not to attempt to calculate the Cost Approach to value."

The story I got from the appraiser, was that he had been in C.E and a member of the board was in class and made a declaration. This was supposedly not an official statement from the N.C. Appraisal Board.

Has anyone else run into this, or do this? I'd like to gather some local knowledge. Thanks everyone.

I don't doubt you'r quote from the appraiser. I do doubt the appraiser veracity in his statement to you. Its insulting, and obviously your not going to swallow that BS from this appraiser. That's why your here.

If I were in your shoes, I would tell the Appraiser you don't give a dang bit what the NCAB person said! So complete a cost approach ...or i will send this into the NCAB along with your quote and let them sort it out!

That will get this amateurs attention.