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dealpath.com
Cost Approach Appraisal: How to Value CRE Properties
The cost approach to appraisal in commercial real estate values property based on the costs of construction. Learn the formula and how it works.
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One of the methods appraisers use when determining the value of a home is the cost comparison approach. Cost comparison appraisals determine the value of a home based on how much it would cost to build an equivalent home today. This approach factors in how much the property’s land is worth and deducts any loss in value, known as its accrued depreciation. The cost comparison approach is based on the belief that a buyer should not have to pay more for an existing home than what it would cost to bu
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