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Commercial Real Estate Appraisal Cost Approach
Posted on Selasa, 22 November 2011 by Yana Xena
The cost approach was historically prepared as a part of most commercial real estate appraisals. However, the compunction to include the cost approach (when it was not relevant) has dissipated over the last 20 years.
The principle of substitution is the technical basis for employing the cost approach. According to the principal of substitution, a prudent buyer would not pay more than the cost to build a like property. In other words one would not spend ,000,000 to purchase a new apartment
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