Cost Townhouse

[PropertyEconomics]

"The cost approach is not a good indicator of value in row townhomes. The builder builds one unit (4 homes) at once and the cost breakdown for each individual unit is not easy to abstract. Builders buy their materials in bulk when building attached homes."

I know of an infill unit being constructed right now not a mile from my house. One unit between two existing ..... not all units are built at the same time .....

 

[Lee Lansford]

"The cost approach is not a good indicator of value in row townhomes. The builder builds one unit (4 homes) at once and the cost breakdown for each individual unit is not easy to abstract. Builders buy their materials in bulk when building attached homes."

RE: your 2nd sentence...

Cost services do provide costs for the individual dwellings.

There are some good reasons why the CA may not be necessary (i.e., does not yield meaningful results), but, what you cite is not one of them.

 

[residentialguy]

Cost services do provide costs for the individual dwellings.

Yes, they do...but like you added, it wouldn't yield meaningful results.

It sounds like OP is doing a townhouse. That one unit was created by being part of a whole development. You don't just buy the single plot of land and put 1 attached townhouse on it. This isn't Legoland. To build that single unit, you had to purchase the land and build the group/development. You can take the whole group and take the mean of the total cost, but it is not a meaningful result for a single unit.

 

[CANative]

edit. looking for better example. Edit #2: No. That was a good example.

WHAT?????

Personal property has no "market value" which can be determined by analysis of sales of similar personal property ..... seriously?

How about gas station USTs, as an example?

For assessment purposes there are many items of tangible and intangible personal property which must be taxed based on fair market value. Many of these items have no market and do not produce income.

 

[David Mescon]

The Cost Approach could be developed, but it is rather complicated, because it involves determining the pro rata share of common area improvements.

That is, IF there are common elements, (other than the attached building components).