Would you guys use Builders-cost.net as your source of cost data?

[Eric C]

If I use the website Builders-cost.net to estimate the replacement cost, would that be reliable enough if i dont use Marshall and Swift in some appraisals?

I use both but sometimes I might only get the one from the website and If I only mention that as my cost data source would that be ok? Is builders-cost an accepted source to use on its own? of course, with all the additional comments that I use when the cost approach is not reliable.

 

[CANative]

Sure. Lots of appraisers use it. You should not rely on a single cost source though.

 

[Mike Boyd]

I have used builders-cost.net.......but I add, "modified to reflect extraordinary local or site specific costs."

 

[Mike Boyd]

Over-kill, Greg. How many sources would you deem as necessary?

 

[Eric C]

I have used builders-cost.net.......but I add, "modified to reflect extraordinary local or site specific costs."

That was my next question if I could modify it. Because sometimes their estimate seems too low.

 

[Terrel L. Shields]

Costs should be costs and if it is new construction surely you can get some kind of idea what the builder expects to build the house for and what "extras" might not show up in the cost book. Books are just averages. "Costs" should be what "Costs" really are and without builder inputs I don't have a lot of faith in M & S or any other cost book.

For court, M & S is considered the one and only source sadly, and I have heard lawyers call the cost approach the "marshall and swift approach". But the builder can tell me what his profit expectations are and what the actual bid is.

 

[CANative]

Over-kill, Greg. How many sources would you deem as necessary?

The other source could (and usually is) survey of local builders (like you implied with your qualification: "modified to reflect extraordinary local or site specific costs")

"If the cost approach is important to the appraiser's value conclusion, the appraiser is well advised to obtain a reproduction or replacement cost estimate from at least one contractor. To supplement the contractor's cost estimate, the appraier should develop at least one other cost estimated or use one developed by a cost service. If the appraiser adopts the contractor's estimate with no other evidence, the estimate is not the opinion of the appraiser, but of the contractor." J.D. Eaton, Real Estate Valuation in Litigation.

 

[VolcanoLvr]

When a CA is 'demanded' by a client, I print the Building-Cost.Net report for a particular property, and then scan those 2 pages into my report. I leave the CA portion on the report blank, except for the vacant site value (which I always include on every report).

The preceeding page to these explains that this information is generally requested to calculate insurance coverage, but that I am in no way sanctioning that use.

As Paul Harvey says..."there's more to the story", so if anyone is interested in more details, send me a private e-m.

Dave
dtowne @ fidalgo . net (take out spaces)

 

[Jerry Bone Jr]

Builders-cost.net could be right on for a specific property, slightly off for another property, and way off for a third. As could M&S. As could any cost service.

 

[Tony in Ohio]

Like Dave, I use it when a lender "Needs" a cost approach on a home where it is not really applicable. I generally use MS for new construction or other casses where the cost appoach is applicable, just because it is the "standard" and therefore should not have to be defended if the loan goes south.

Having said that they both seem to have pretty credible results, you just have to think a little bit to get it into the forms SF format. I like the idea of scanning it in and may do that from now on.