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| <Philip v W>
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Reply to post by Jez Partridge, on April 17, 2000 at 10:05:34:
In North America we use the CTLA method of valuation. This method is based solely on replacement value and does not adequately address property or amenity value. If you want more information please send me a line or respond at this site. Cheers, PVW |
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| <Scott Cullen>
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Reply to post by Philip v W, on April 17, 2000 at 10:05:34:
Phillip, the new 9th Edition will go into some detail about testing the reasonableness of values developed with a replacement cost approach against an explicit property value. If the initial indication of value is high the appraiser, if appropriate, can depreciate down. If the the initial indication is low there are three possible implications: 1) that depreciation is too severe and needs to be reduced, 2) that the method is inapropriate if depreciation is already minimized (there's no mechanism for reverse depreciation) or 3) it doesn't matter.... because replacement cost is less that value you get away cheaply, value is restored at less than 1:1 or there is an advantageous cost:benefit ratio. I'd be interested in your description of 'amenity values' and how they are inadequately addressed. |
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