The Residential Appraisal Report – Cost Approach Section
The “Cost Approach” is one out of three methods that can be used by an appraiser to estimate an opinion of value for your property. The appraiser may not have used this method in your appraisal report because it’s often typically used for new construction, special purpose properties, or by request.
The cost approach section of the appraisal report is a cost breakdown of the value of your land plus the cost of the improvements on the land minus any depreciation. The information in this section should be consistent with the information in the improvements section.