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The Student Handbook to T HE A PPRAISAL OF R EAL E STATE 1 Chapter 15 Building Cost Estimates

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Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 15 2 Cost Data Sources Cost Estimating Services Marshall and Swift, R.S. Means, etc. Cost Index Trending The subject cost $750,000 to build seven years ago, so it should cost $875,000 today.

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Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 15 3 Cost-Estimating Methods Comparative-Unit Method Usually done by appraisers Usually done with a cost per sq. ft. Unit-in-Place Method Reflects individual parts of construction with all trades and components represented in that part included The cost of a linear foot of wall in place, including all costs

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Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 15 4 Table 15.1 Example of Unit-in-Place Method of Estimating Reproduction Cost New

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Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 15 5 Quantity Survey Method Estimating cost based on every part and every cost Very time-consuming and not usually done by appraisers

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Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 15 6 Problems Suggested solutions begin on page 365.

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Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 15 7 Problem 6

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Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 15 8 Problem 6

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Student Handbook to T HE A PPRAISAL OF R EAL E STATE Chapter 15 9 Problem 7

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