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Quantity Survey Method

DEFINITION

Appraisal method that uses the reproduction cost of building a similar building to the subject property as the basis for the estimated value.

EXPLANATION

The quantity survey method is an appraisal method that values property based on the estimated costs of construction. The costs associated with construction involve the price of physical component, including all products which make the house, and the cost of labor needed to install them.

Each aspect of the house is calculated individually to derive at a value. For instance, the cost of material, cost of labor, city coding along with inspections are calculated individually and then added to derive the total cost for estimating the value of the property. This method is less common vs the other methods, for most appraisers tend to not have an infinite knowledge of construction, thus making it difficult for the average appraiser to estimate the value of the property accurately.

The purpose of this appraisal method is to derive at the cost of the subject property being appraised. Additionally, this method might be used by developers and builders that wish to know the cost of development. This is crucial prior to a developer making their final offer on a purchase.

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