Adoption of the cost approach in the appraisal of housing structures Sample Clauses

Adoption of the cost approach in the appraisal of housing structures. The cost method calculates the full replacement value of a building on the basis of the amount of construction works and completion information, the current fixed standard, construction costs and loan interest rates, and the appraised value of a building by determining the newness ratio in accordance with the service life of the building and on- site inspection of the building. The basic formula is: Appraised Value = Full Replacement Value x Newness Ratio For the appraisal of large-scale, high-value and important buildings (structures), where the enterprises have provided information on the final account of the completion of the housing and building works, the amount of building works shall be determined on the basis of the information on the final account of the completion of the building works; where the enterprises cannot provide information on the final account of the completion of the housing and building works, the amount of building works shall be re-compiled and determined on the basis of the relevant technical information provided by the enterprises as well as on-site investigation, with reference to the indicators of the amount of works of the corresponding buildings. The full replacement value of the building is calculated based on the current fixed standards, construction costs and loan interest rates, and the net appraised value of the building is calculated by comprehensively determining the newness ratio based on the service life of the building and the on-site investigation of the building. For other buildings, the unit replacement value is determined and the net appraised value is calculated on the basis of an on-site investigation, taking into account various appraisal factors in a comparable manner. (1) Determination of full replacement price
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