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Site title: Class Valuation | Leading Appraisal Management Company
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by John Dingeman
The cost approach is one of the three classic approaches to value in real estate appraisal, but in residential lending it’s also one of the most misunderstood. Some appraisers see it as unnecessary. Some lenders assume it always equals “replacement cost.” Borrowers and agents often expect it to match what they paid to build or renovate. <...