Warning

Info

Warning

Info

Warning

Info

LSDefine

Simple English definitions for legal terms

cost approach

Read a random definition: specialty contract

A quick definition of cost approach:

The cost approach is a way to figure out how much a property is worth by calculating how much it would cost to build a similar property from scratch. This method assumes that a buyer would not pay more for a property than it would cost to build a new one with the same usefulness. It is one of three common methods used to appraise real estate, along with the market approach and income approach.

A more thorough explanation:

The cost approach is a method used to appraise real property. It is based on the cost of building a new structure with the same usefulness as the property being appraised. The assumption is that an informed buyer would not pay more for the property than it would cost to build a new structure with the same usefulness.

For example, if a property is being appraised and it would cost $500,000 to build a new structure with the same usefulness, then the property would be valued at $500,000 or less. This is because an informed buyer would not pay more than the cost of building a new structure.

Another example would be if a property has a building on it that is in poor condition and would cost $200,000 to repair or replace. The value of the property would be based on the cost of repairing or replacing the building, not on the value of the land or the potential income the property could generate.

The cost approach is one of three methods used to appraise real property, along with the market approach and income approach. It is often used for properties that are not income-producing, such as single-family homes or vacant land.

cost and freight | cost-benefit analysis

Warning

Info

General

General chat about the legal profession.
main_chatroom
👍 Chat vibe: 0 👎
Help us make LSD better!
Tell us what's important to you
MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
LSD+ is ad-free, with DMs, discounts, case briefs & more.