Definition of "Appraisal by summation"
Appraisal by summation is an Alias for Replacement Cost A.K.A. Cost Approach, which is one of the approaches an Appraiser can go through in order to assign a Market Value to a property as a product of his/her Appraisal.
If you don’t want to click on the links for more detailed information regarding the Appraisal by summation replacement cost approach, here’s the “too long; didn’t read” version: Appraisal by summation is a method of setting a market value for a property by calculating the amount of money it would take to build from ground up - with the same materials and specifications - a new identical property on the exact location.
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