Tag Archives: valuation

Cost Approach: Method of Real Estate Valuation

Cost Approach is one of the three methods of estimating the market value of real estate. The other two methods are: Sales Comparison Approach and Investment Approach. Cost Approach is also referred to as the Contractor’s Method. In Cost Approach, you arrive at the value of real estate by summing up the market value of land and the cost of the building. You may need to add to this profit. There are four steps in Cost Approach.

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