I’m wondering if any of you do Replacement Cost estimates.
Some of my work in Florida is 4-Point and Wind-MIT Inspections, which are part of home insurance requirements.
Back in the day I used to do Replacement Cost on Condo Association buildings for insurance agents, but I was at that time a Certified Real Estate Appraiser.
I would like to offer this service to agents now, but am wondering if I’d be in a grey area, as far as my Home Inspector license is concerned.
I did some very early in my career but then got smarter.
I may have later given a verbal ballpark estimate but mostly I said to get 3 bids for the work they wanted done because what one professional charged my be way off from what another charged.
I remember hearing of an inspector that gave a cost to cure price and he was so far off that the client sued him and won the difference…and it wasn’t small.
jeubank1
(James Eubank, Professional Inspections since 2002)
5
Offering cost estimates is definitely NOT in our Standards of Practice. Almost inevitably your estimate will be wrong, since you are not the contractor doing the actual work. Much better to get bids from actual contractors
I forgot to say that I used the M&S software to do this. And yes, using the Cost Approach to Value was part of my SOP at that time, so it wasn’t far-fetched to estimate replacement cost.
I worked as an manager/estimator for a CGC for 9 years.
I’m still adjusting to a new way of thinking, and appreciate all your help.
I replied from my email to Larry yesterday, and did not realize I added all my info. The info was unintentional.
