Cryptocurrency Q&A
What are the key assumptions for the cost approach?
What are the key assumptions for the cost approach?
Caterina
Wed Jan 22 2025
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I'm trying to understand the cost approach and I want to know what the key assumptions are behind this method. What are the fundamental premises that the cost approach relies on?
5 answers
Valentina
Fri Jan 24 2025
The cost approach to property valuation is centered around a fundamental assumption.
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TaekwondoMasterStrengthHonorGlory
Fri Jan 24 2025
This assumption posits that individuals should refrain from purchasing a house if the cost of constructing an equivalent one on a similar plot of land is lower.
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charlotte_bailey_doctor
Thu Jan 23 2025
The rationale behind this is that buyers would logically opt for the cheaper option of building anew rather than acquiring an existing property at a higher price.
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Lucia
Thu Jan 23 2025
Conversely, the cost approach can also offer valuable insights in identifying instances where real estate may be undervalued.
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KDramaCharm
Thu Jan 23 2025
By comparing the cost of constructing a new property to the market value of an existing one, investors can spot potential bargains.
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