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LSDefine

Simple English definitions for legal terms

cost approach

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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

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snow
9:59
wish it was snowing in texas rn
Dkk
9:59
Man, hate this conversation cus it just reminds me of the gay guy that used to always ask me for them.
BulbasaurNoLikeCardio
9:59
That cold snap that hit texas is heaven though, opening windows in the house and using the fireplace
snow
10:00
it really is bulb. it was hot as hell for the longest time
BulbasaurNoLikeCardio
10:00
@Dkk: You could of made so much money
that sounds heavenly
babycat
10:00
Aw Dkk has trauma from the gay guy who wanted to fuck his arches
snow
10:00
lmaooooo
BulbasaurNoLikeCardio
10:00
@snow: winter is tattoo season and since that cold snap hit I got one done and have three sessions scheduled lol I love the cold
snow
10:00
whys that?? you're lowkey inspiring me now
snow
10:01
ive been wanting a thigh tat for so long
snow
10:01
or maybe something on my knee, but i heard thats hella painful
Dkk
10:01
I wouldn't say trauma, the trauma would probably come from seeing my friends head get crushed by an LTV and feeling the bag of glass that was his skull in my hands. Or knowing a kid I mentored shot himself with a bullet he used to keep around his neck that I allowed him to have illegally.
Dkk
10:01
Feet shit though, just annoying.
dkk that is heavy stuff
snow
10:01
jesus dk
BulbasaurNoLikeCardio
10:01
Winter is tattoo season because you are less likely to be in the sun exposing the healng tattoos, you dont go swimming or tanning in winter either so you don't miss out on the fun stuff of summer
Guys
Do u think I will hear from au today
snow
10:02
homely i hope we do!
Yes is the only correct answer ty
Dkk
10:02
Lmfao, it's just part of life in the military. Couple years ago a guy I knew got crushed by a tree. Is what it is.
snow
10:02
@BulbasaurNoLikeCardio: thats smart. i dont know anything about tattoo care lol
babycat
10:02
Also piercings are better to get in the winter
snow
10:02
dk i feel like you would do great in criminal defense
soap
10:02
you good Dk?
snow
10:03
i got my nose pierced last thanksgiving and it got infected @babycat
Dkk
10:03
Probably could just shock the jury into sideing with me lol
babycat
10:03
I mean bc you can’t go swimming with a piercing
Dkk
10:03
Ahh yeah, just hate that word. Trauma. Hate how people use it.
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