• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Cost Approach

Status
Not open for further replies.

Shelby

Thread Starter
Freshman Member
Joined
Jan 17, 2002
Hi, Newbie Here!

I'm failing to grasp the essential difference between the Unit-in-Place Method and the Quantity Survey Method. Can anybody help me out? Thanks!!

Shelby in CA :D
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
The unit in place is basically the abbreviated cost estimate. It is an estimate of what it will take to complete each phase. This is the method you use in the Marshall & Swift Cost Analysis Hand Book, or will see from a builders' plans and specs. IE: what does it cost to clear the lot + frame the house + siding & roof + finishes + kitchen,......Etc.

Quantity survey is an estimate of totaling the cost of each individual part to be used in construction and the cost of labor per part. It is a complete break down of the amount and cost of all of the items needed to complete construction. IE: how many concrete blocks @ $, how many nails @ $. How many 2x4's @ $. How many sheets of plywood @ $. How many ....... @ $, PLUS the cost of labor.

It is very rare that you will use the quantity method in residential, but engineers love this method! It is all they think about, don’t believe me? Wait until you have one as your customer!!! :roll:
Hope this helps.
Mell.
 

Shelby

Thread Starter
Freshman Member
Joined
Jan 17, 2002
Thank you Mell! Thanks to your excellent response I think I've got it. 8)

Shelby
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
No problem. Just remember that when you think that you know it all and can quit learning, that is the point when you become dangerous to the profession. Even old stogies have to look back at the basics manual every now and then.
Mell.
 

Shelby

Thread Starter
Freshman Member
Joined
Jan 17, 2002
Know it all?!! Quit learning?!! 8O

Not I!! College graduate and former teacher here, pursuing appraisal in part so that I can go back to school and get my M.B.A., specializing in real estate.

One of the things I like best about this profession is that every situation is different, necessitating constant review of the essentials, and ongoing education to keep up with changes in the industry.

Don't worry about me, Mell. :D

Thanks again,

Shelby in CA 8)
 

JennC

Junior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Hampshire
That's great! I wish I new of such programs around here (Southern NH). I would love to continue my schooling as well. If I ever went back to get my MBA I would love to do it in Real Estate.

Knowledge is Power! :wink:
 

Shelby

Thread Starter
Freshman Member
Joined
Jan 17, 2002
Hi JennC,

MIT (not far from you?) has what is probably the best real estate program in the country, providing a broad-based real estate education which does not focus on finance like many MBA programs. (I would prefer that :? !) Check it out. It's called the MIT Center for Real Estate and they are (of course -- they're smart!!) on the web. Best of luck to you.

Shelby in CA 8)
 

JennC

Junior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
New Hampshire
As a matter of fact, after I read your post, I did some research. I'd love to go to MIT, after all, it is THE MIT. It looked like an interesting program, I believe it's a year long, with a pretty hefty price to go along. I tried to convince my husband that it would be nice to have a MIT graduate in the family, but he couldn't get over the price. I still think I'm going get the information anyway.

Cheers!
 

Shelby

Thread Starter
Freshman Member
Joined
Jan 17, 2002
JennC,

Make sure the husband understands IT'S TAX DEDUCTIUBLE :lol: , (once you're in the industry (as we say in the movie business), which you are...) If you don't pay the money to MIT (THE MIT) you will pay it to the US Government. (Lucky you to be near MIT -- what a program!!)

Education is incredibly expensive these days, but you and your husband should consider it an investment -- especially if you are continuing your education in your field and can absolutely deduct all of your education expenses!!

All the best,

Shelby in CA 8)
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks