cost approach

cost approach

An appraisal method that estimates the cost to reproduce or replace an improvement and then subtracts an amount for depreciation to reach the current condition of the property. Of the three approaches—comparison to comparable properties, capitalization of income,and cost—cost is the one deemed least reliable overall,but most necessary in the case of unusual properties with no realistic probability of a tenant.

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The appraiser then used the development cost approach to estimate the market value of the property at $535,000.
Ryan Principal Thomas Brannigan said that the cost schedules used within the Cost Approach were deemed unconstitutional in Town of St.
A cost approach would measure fair value based on the current cost to replace the service capacity of an asset.
The cost approach involves estimating the replacement cost of buildings and other improvements, subtracting depreciation, and adding the value of the land.
For the cost approach, look at the number of slips, slip length and overall lineal feet of dock.
Residential Appraiser Site Valuation and Cost Approach
The cost approach values IP based on the cost to obtain it; the income approach values it based on its income-producing ability.
On appeal, Burks argued that the MTC's appraiser erred by mixing the cost approach and the sales comparison approach, and by using sales that were not comparable to the subject property.
Now with the click of a mouse, users of M&Sconnect(TM), Marshall & Swift's (M&S's) on-line suite of data sources and management tools for commercial real estate appraisers, can easily access and pre-populate M&S's SwiftEstimator(TM) Commercial Estimator for a Cost Approach estimate.
However, the court held that the BTA had a duty to value the properly independently and erred in reverting to the auditor's cost approach valuation.

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