Calculate Cost to Build

To follow the logic of the cost approach, refer to the appraisal form. First, calculate the cost to build the property using dollars per square foot. Use a figure that would apply in your area for the type of property you're valuing. To learn these per-square-foot costs, talk with local contractors or consult the Marshall & Swift construction cost manuals in the reference section of your local library or on the Internet.

Because replacement costs correlate directly with the size and quality of buildings, an accurate measurement precedes accurate valuation. Notice, too, that the cost of upgrades and extras (crystal chandelier, highgrade wall-to-wall carpeting, high-end appliances or plumbing fixtures, sauna, hot tub, swimming pool, garage, carport, patios, porches, etc.) must be figured separately and added to the cost of the basic construction.

Credit Score Booster

Credit Score Booster

There are many misconceptions about credit scores out there. There are customers who believe that they don’t have a credit score and many customers who think that their credit scores just don’t really matter. These sorts of misconceptions can hurt your chances at some jobs, at good interest rates, and even your chances of getting some apartments.

Get My Free Ebook


Post a comment