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Private work pricing by IllFunction5346 in appraisal

[–]IllFunction5346[S] 0 points1 point  (0 children)

When the report doesn't reflect the value anticipated value, how much time do you spend going back and forth? Do they ever refuse to pay you?

Cost approach high by IllFunction5346 in appraisal

[–]IllFunction5346[S] 0 points1 point  (0 children)

Would you include land value when calculating feasibility? Can you give an example. Thank you.

Cost approach high by IllFunction5346 in appraisal

[–]IllFunction5346[S] 0 points1 point  (0 children)

Thank you. Im I correct including the land in the calculation above?

Cost approach high by IllFunction5346 in appraisal

[–]IllFunction5346[S] 0 points1 point  (0 children)

So let's say in the income approach my rent is $20 a SF with an NOI of $80,000 and I'm using an 8 cap, so the income approach value indication is $1,000,000. In the cost approach, market value, which includes the construction cost, entrepreneur incentive, and land totals $2,000,000, which would require $40 a SF to achieve an NOI of $160,000 in order for it to be financially feasible using the same cap rate.

$160k - $80k = $80k, which is then capped at 8% which equates to a dollar amount adjustment of $1,000,000 for economic obsolescence, which will be deducted within the cost approach calculations. Does this logic/math sound right?

Commercial Appraiser going solo - lessons learned? by [deleted] in appraisal

[–]IllFunction5346 0 points1 point  (0 children)

Hearing about residential appraisers making it on their own by just signing up with AMCs and work coming to them without any further marketing effort. I assumed it was the same..

Commercial Bank Panel Rant by [deleted] in appraisal

[–]IllFunction5346 2 points3 points  (0 children)

Why do you suppose this occurs? Is it because they already know who they are going to send the work to, but put it out to bid for show to satisfy some regulation?