The Value of the Cost Approach
Beyond its use as an independent method to determine property value, the cost approach presents a highly effective way to verify market and income-based valuations, project construction costs and adjust estimates to account for unique physical property features. The cost approach can be used for the extraction method to determine land values in highly populated areas, when comparable open land isn't available.
With more than 80 years of experience, Marshall & Swift building cost incorporates three cost methodologies ensuring users have the tools for a complete and defendable determination of value.
Square Foot Methodology - The most commonly used calculator/ assumptive valuation method based on the gross square footage of structures by location.
Segregated Methodology - Uses component-by-component costs of superstructures such as foundation, frame, plumbing, electrical, etc.
Unit-In-Place Costs - Individual pricing of components such as windows, doors, roofs, subdivision cost and yard improvements, etc.
