Appraisers' Free Forum

Jim Plante wrote:Think I'll get permission from the client to have this peer-reviewed, and then post it in the APO section so you guys can rip it a new one.

(Remember, you never learn a damn thing when everybody agrees with you.)

Thanks. I notice, and I suppose I should assume this, that we all tend to think of our own individual circumstances and experiences when we contribute to this sort of discussion. It would be good to see real stuff from somewhere else and how a geo-competent appraiser handles it. I can at least, being totally geo-incompetent in TN, check the math and say whether I understand the rest of what you are trying to explain.

Good idea Jim.

Jim Plante wrote:Since the effective age of this prop is so low, I'm going to do a replacement cost on it. (It'll take an FO/superadequacy hit, though). That won't get relied on.

Actually, if you do replacement, rather than reproduction cost, the functional obsolescence should be pretty much built-in. Superadequacy, in terms of external obsolescence might be something else, though. If the land was unimproved would someone build an office building there? If the answer to that question is "yes" then superadequacy relies almost entirely upon the 'old house re-improved' aspect... probably somewhat lessened by the use of replacement cost. How much weight you put on it depends a lot on your other info. If you have good sales and can develop a credible income approach, then I wouldn't put much weight on it. If you don't have good sales, and the income approach has reliability problems, then I would put more....

Steve I have been looking for a reliable source of replacement cost values. What do you use and where can I get it?

What has happened to the profession with cheaper-faster is like bowel blockage. It is going to take time to pass. Everybody has been dealing with this for several years and you can make it through.

Jim, I doubt you could have ever educated this guy who is impressed with how cheap the other guy is. If the difference in fee didn't alert him that he just might get as much back as he pays for it. When he, or whomever else relies on this appraisal, dusts it off and tries to make sense of it we can only hope they remember what they did. They deerve what they are will be getting. Same thing happened here the other day with a subdivision analysis. It was shopped and the cheapest and one of the weakest appraisers in town was awarded the assignment. He has never done a subdivision development and he bid it so low he can't get help.

Count it lucky, Jim, but lets go with the peer reveiw on something else. I just did one I will see if I can get loose from whatever confidential expectation the client has and send to individuals who want to look at it. The cost to those who is thought out review feed back, so the one I have in mind needs to go to cert. gens. or those who will be soon.

Edd Gillespie wrote:Steve I have been looking for a reliable source of replacement cost values. What do you use and where can I get it?

It's not primarily a matter of a manual for "replacement" cost... rather it's a matter of costing it out the way it would be built if constructed today. I use Marshall Valuation Service... the big manual. It's a little convoluted to use... lots of multipliers and add-ons, but it does seem to be pretty accurate most of the time. The main exceptions I've noticed are for things that can have really wide variances in cost and quality, such as fireplaces.

Thanks,

I misread your comment to be one of reproduction cost. I tried ton edit my post, but this thing locked up n me.

OK, I'll see what I can do. It occurs to me that we may need a few ground rules about piracy, dissemination and use of the appraisal. I can imagine some uses that would sink the ship and my imagination is limited compared to the innovations I have heard of. I also want to break into the review shell and mentor myth and use this opportunity to improve myself and the profession. I do not think peer review and mentoring sould be limited to the AI or other orgs particularly if we want to progress. What do you suggest?

Maybe it would be a good idea to set up hypothetical assignments based on real facts, charge for participation and donate the money to some real improvements.

Am I being too paranoid? I don't want to restrict access to the exchange of this sort of education, but I have noticed that there are some out there that want to copy and just talk instead of learning and doing the hard work of thinking. It seems to me there should be some quid pro quo, honesty and discreet behavior required.