Archive | Cost Approach

          On occasion, one will encounter a property which is so unusual that it cannot be valued by the comparable sales (or market data approach) or by capitalization of income.  When that happens, the cost approach will be utilized.           In the cost approach, an appraiser values the property premised on the value of the land and then adds what it would cost to build a new structure.  The value is based on reproduction costs less observed depreciation.  All increment costs are also considered and added to the value.  The… read more