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Value Definition For Depreciated Cost Of Improvements?

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If all he wants is an opinion of depreciated cost, then I am confused how value even enters in.

I would call it depreciated cost of improvements (estimated). Why does the term "value" have to be included?
 
Interesting take. To me,it sounds like replacement cost with the use of the word "like" (as in similar, not exact) in design, size, etc.
Yeah, I'm not set in concrete here.
This is what I see:

  • The value of a building or structure shall be the estimated cost of constructing a new building of like design, size, and materials...
So, we are going to build a new building. Like (similar) design which would include designs that are functionally impaired or superadequate. We are going to build it at the same size and of "like materials" (not what is standard for today, but like materials of what exists).
  • at the site of the original structure, assuming such site to be clear. Cost of additions, additions or repairs shall be constructed as the total cost of labor, material and services based on current prices for new materials.
I read this to be the current price of new materials, but not different materials. The current cost of the new materials that are "like" to what existed.

Here's Reproduction Cost & Replacement Cost definitions from the Dictionary of Real Estate Appraisal (so we all have a common reference):
Reproduction Cost: The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design and embodiying all the deficiencies, superadequacies, and obsolescence of the subject building.

Replacement Cost: The estimated cost to construct, at current prices as of the effective appraisal date, a substitute for the building being appraised, using modern materials and current standards, design, and layout.
Florida Code:
Value Determination - The value of a building or structure shall be the estimated cost of constructing a new building of like design, size, and materials at the site of the original structure, assuming such site to be clear. Cost of additions, additions or repairs shall be constructed as the total cost of labor, material and services based on current prices for new materials.​

The Florida code sounds closer to Reproduction Cost than Replacement Cost to me.

"LIke":
upload_2016-9-3_11-41-4.png

But someone could change my mind! :cool:
 
I don't know enough to "identify the problem". That is my problem.

But that is step one. So I need to refrain until I can "identify the problem".
 
Yeah, I'm not set in concrete here.
This is what I see:

  • The value of a building or structure shall be the estimated cost of constructing a new building of like design, size, and materials...
So, we are going to build a new building. Like (similar) design which would include designs that are functionally impaired or superadequate. We are going to build it at the same size and of "like materials" (not what is standard for today, but like materials of what exists).
  • at the site of the original structure, assuming such site to be clear. Cost of additions, additions or repairs shall be constructed as the total cost of labor, material and services based on current prices for new materials.
I read this to be the current price of new materials, but not different materials. The current cost of the new materials that are "like" to what existed.

Here's Reproduction Cost & Replacement Cost definitions from the Dictionary of Real Estate Appraisal (so we all have a common reference):
Reproduction Cost: The estimated cost to construct, at current prices as of the effective date of the appraisal, an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design and embodiying all the deficiencies, superadequacies, and obsolescence of the subject building.

Replacement Cost: The estimated cost to construct, at current prices as of the effective appraisal date, a substitute for the building being appraised, using modern materials and current standards, design, and layout.
Florida Code:
Value Determination - The value of a building or structure shall be the estimated cost of constructing a new building of like design, size, and materials at the site of the original structure, assuming such site to be clear. Cost of additions, additions or repairs shall be constructed as the total cost of labor, material and services based on current prices for new materials.​

The Florida code sounds closer to Reproduction Cost than Replacement Cost to me.

"LIke":
View attachment 29636

But someone could change my mind! :cool:

Not saying you're wrong and I'm right, but I still don't see anything in the Florida code that suggests "an exact duplicate or replica of the building being appraised, using the same materials, construction standards, design, etc." I interpreted the word "like" to mean similar, not an exact duplicate. (I also think we both have too much time on our hands:)).
 
HK; "a new building of like design, size, and materials" (Fla. Code) appears to be, Replacement similarities in my mind, of course that is always questionable.

FEMA, requires the municipality to follow their concept, or Jeopardize the flood insurance coverage; did not appear the OP was referencing FEMA
 
Student: "When does depreciation start?"
Instructor: "When the tree is cut down."
 
Student: "When does depreciation start?"
Instructor: "When the tree is cut down."

Emerald ash borers are having a devastating effect on ash trees in this region. I had one (70'+) taken down two weeks ago: it wasn't in a particularly difficult location, but had to come down so as to not hit the electric service line to our house. Because it could be felled in an overgrown area, the bole and large limbs didn't have to be cut up and hauled off.

The cost of felling the tree was $900. I suppose that's when the depreciation stopped?
 
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