Anyone care to educate me on developing the As-Is value mid new construction?

[Zoe]

The "market " of what the components, or the whole costs differs at the wholesale/acquistion level and on the retail sell to consumer lefvel.

Same is true with properties ( though the underlying land being location based makes it more complex. ) But the same market competion on the sale end to customer buyers apply. That is why appraisal fundamental is that cost does not always equal value. The sales price of a dwelling might be less than, more than, or equivalent to the cost to build it ( and the same for a contributory cost of a component such as a swimming pool., )

People that work at home depot or many builders and even cost books are credible sources of estimated cost to complete. I can call many local builders and for a fee and they would go look at it and give their estimated cost to complete and their entrepreneurial incentive if they bought it. Most builders have a target profit margin on similar construction in the same range. Cost manuals are credible cost sources to rely on. They are both market based.

Insurance adjusters would be a good cost estimate source. Effective date is very important. I can imagine in the last month, costs have risen a bunch. If my effective date was a month ago?

 

[George Hatch]

I use cost elements to develop the adjustment for the total discount from "as complete", but it's till more direct to extract that factor from the market. Same as I would for any atypical variable. Excess land, tennis court, atypical construction, superadequacy.

I have never once based my value conclusion solely off the cost approach.