Unit In Place Method

Definition of "Unit in place method"

Approach to valuing property based on its replacement cost. The cost of each major element of the property per square foot is added together and multiplied by the total space to estimate what it costs to rebuild the structure. Assume the cost per square foot for the following components of a building: walls - $4.50, ceilings - 1.50, floors - 2.50, other - 8.00 , total $16.50. If the total square feet are 20,000, the property's estimated value is $330,000 ($16,50x20,000).

Search Real Estate Glossary

Related Real Estate Glossary terms

Point

Loan service charge; each point equals 1% of the amount of the total mortgage loan, which must be pa ...

Chargeable

Describing automobile accidents that are considered to be the results of the negligent acts of the i ...

Insurer

An insurance company or underwriter. An insurance policy is a legal instrument assuming the risk of ...

Jumping Juvenile Policy (juvenile Estate Builder)

Life insurance coverage on a child in which the initial face amount of the life insurance policy inc ...

Vacancy Rate

Percentage of rental property that is unoccupied. For example, a vacancy rate of 25% means that 25 ...

Net Listing

A listing wherein the commission is the difference between the selling price and a minimum price set ...

Related Real Estate FAQ

What Happens When A Property Starts To Depreciate?

When a property depreciates it declines in the value of the property due to poor location, dilapidat ...

What Is A Contingency?

A contingency is a provision included in a sales contract stating that certain events must occur or ...

What Is A VA Loan?

A VA loan is a type of loan available to veterans and guaranteed by the Department of Veterans\' Aff ...

What Do I Need To Know About Business Insurance?

Commercial insurance is designed to help protect many of the risks your business can face, including ...

What Is Comprehensive Homeowners Insurance?

Comprehensive is the most expensive type of homeowners insurance; it covers the most potential damag ...

What Do I Need To Know About Homeowners Insurance?

It is where you live and where your possessions are. Chances are, it\'s your asset. But more than po ...

Read why Real Estate Agent rates 5 Stars in 10 Agent Reviews

Agents join here

Add our widget on your Website

Real Estate Advice

5 U.S. Cities with the Best Public Transportation When to buy a house Tax Breaks for the First Time Home Buyer 7 Tips for a First Time Homebuyer Is it better to buy or sell a home first

FAQ

What is a lien? What is zoning? What is a subprime mortgage? What is a wraparound mortgage? If I want to buy a house and I know the property and the seller already have an agent, can I act as my own agent and negotiate a lower fee?