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 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.
Examples of Cost approach in a sentence
The most common example is an investment in a public security traded in an active exchange such as the NYSE.• Cost approach - This technique determines the amount required to replace the current asset.
Cost approach: valuation techniques that reflect the current replacement cost of an asset at its current service capacity.
The fair value measurement is determined on the basis of the value indicated by current market expectations about those future amounts.• Cost approach - A valuation technique that reflects the amount that would be required currently to replace the service capacity of an asset (often referred to as current replacement cost).
Based on the knowledge of the asset impacted by the project, the appropriate methods used in the valuation of the affected asset are Cost approach, Investment approach and Comparison approach.
The Cost approach values a property based on what it would cost to build the property today, taking into consideration the depreciation by various factors.
More Definitions of Cost approach
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;
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. This valuation approach estimates the value of the tangible and intangible assets. Value is represented by the market value of the land plus the depreciated reproduction cost of all improvements and equipment.
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 to be 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 fair market value. In determining the fair market value of a Project Entity, the assumption shall be made that the Management Agreement will continue indefinitely and that the percentage management fee would continue to be charged to the applicable Project Entity. Each appraiser selected hereunder shall be a reputable appraisal firm which has substantial experience in appraising commercial real estate, which shall mean that at a minimum the appraiser must be state certified, a member in good standing with the American Institute of Real Estate Appraisers and a member in good standing with the Appraisal Institute. All appraisers shall have complete access to the relevant books and records of the Project Entity they are appraising during the conduct of their appraisals. If the fair market value of a Project Entity is finally determined in accordance with this Section 3.8(C), and a put or call option is exercised within four (4) months from the date of such final determination, then such fair market value shall be used in connection with the purchase and sale occurring as a result of such exercise.