Methods of Estimating Cost

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There are three common methods of estimating costs of residential properties:

 

Comparative Unit Method
Unit-in-place method
Quantity survey method

 

In addition to the three common methods above, there are three less common methods used in commercial and advanced appraisal applications.

 

Subdivision Development Method
Ground Rent Capitalization Method
Land Residual Method

 

These methods will not be examined in this text.

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