Cost approach means the process by which an evaluator establishes an indicated value by measuring the cur- rent market cost to construct a repro- duction of or replacement for the im- provements, minus the amount of de- preciation (physical deterioration, or functional and/or external obsoles- cence) evident in the structure from all causes, plus the market value of the land.
Cost approach. This valuation approach estimates the value of the tangible assets only. Value is represented by the market value of the land plus the depreciated reproduction cost of all improvements and equipment. In general, the Income and Sales Comparison Approaches are considered the best representation of value because they cover both tangibles and intangible assets, consider the operating characteristics of the business and have the most significant influence on attracting potential investors. The appraised values submitted by the three appraisers shall be ranked from highest value to middle value to lowest value, the appraised value (highest or lowest) which is furthest from the middle appraised value shall be discarded, and the remaining two appraised values shall be averaged to arrive at the Fair Market Value.
Cost approach means a method used to establish the fair cash value of property involving an estimate of current construction cost of improvements, subtracting accrued depreciation and adding the value of land;
Examples of Cost approach in a sentence
The Cost Approach provides a value indication based on the depreciated cost of the improvements added to land value.
This is then added to the depreciated improvement costs to yield the value of the total property as indicated by the Cost Approach.
The Cost Approach is typically the least reliable indicator because cost does not necessarily reflect value.
The Cost Approach was not used as a method of valuation in this appraisal.
These are the Cost Approach, Sales Comparison Approach, and Income Approach.
More Definitions of Cost approach
Cost approach means an approach to valuing real estate that requires an appraiser to: (1) Develop an opinion of site value by an appropriate appraisal method or technique; (2) analyze comparable cost data as are available to estimate the cost new of the improvements if any; and (3) analyze comparable data as are available to estimate the difference between the cost new and the present worth of the improvements, also called accrued depreciation.
Cost approach means a method used to establish the fair
Cost approach means the valuation process by which an appraiser establishes an indicated value by measuring the current cost to construct a reproduction or replacement for the improvements minus the amount of depreciation (physical deterioration, or functional and/or economic obsolescence) evident in the structure from all causes plus the market value of the land.
Cost approach means the process by which an evaluator establishes an
Cost approach means one (1) of three (3) traditional approaches to value by which an indication of the value of a property is arrived at by estimating the value of the land, the replacement or reproduction cost new of the improvement, and the amount of depreciation to the improvement. The estimated land value is added to the estimated depreciated value of the improvements to arrive at an estimated property value. The term is referenced in IC 6-1.1-4-39.5.
Cost approach means the appraisal process in which cost of the property being valued is considered in determining an estimate of fair market value. As a general rule, original cost shall be used to value public utility operating property; however, when such original cost is not available, replacement cost or reproduction cost may be considered.
Cost approach means the value of a taxpayer's building(s) is/are developed using construction cost information obtained from across the state.