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.
Real estate tips:
You're the appraiser: evaluate our Glossary Terms. Priceless, right?
Find an agent on The OFFICIAL Real Estate Agent Directory® and have him/her go through all of this hassle on your behalf!
Popular Real Estate Terms
Are you speculating what a spec house means? (sorry for the lousy pun) The textbook spec (or speculative) house definition is “one built on an experimental basis, without an order ...
Regularly, subsequent means something which occurs at a later date. In other words, a subsequent event follows a prior occurrence. For example, new circumstances arise after a contract is ...
The number of units currently occupied in a facility, neighborhood, or city, stated as a percentage of total capacity. For example, a hotel has 80 rooms available for guests. Its average ...
The term “property title” is relatively common and often used in the real estate industry, which is why it’s useful to know what it really means. While the term itself is ...
Drilled well where water rises through the opening because of naturally occurring water pressure. ...
Condensed appraisal report covering the major items. ...
When talking about the open space ratio we are referring to a term that is used in zoning laws and regulations. The open space ratio is a term used to measure open space on a developed land ...
Method of describing a real estate property offering by a developer in lieu of a prospectus. ...
Organizational governing group. Either an appointed or elected body overseeing the management of an organization and rendering advice on current issues. Members are legally responsible for ...
Have a question or comment?
We're here to help.