Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: jjs_ynot who wrote (16052)	1/15/2004 2:07:27 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

dave....the other two methods of valuation are used for non-residential properties almost exclusively. There's not much point in anyone calculating the replacement value of a residential property, except for insurance companies. People don't base their buy price on what it would take to rebuild the place. They base their ideas about its value on what other comparable properties have sold for. Nor is there much point in calculating the income potential of a home, unless of course one is buying it as an investment and intends to derive income from it--and in that case, we can't really call it a "home". The county tax assessor doesn't care how much it would take to rebuild my home or how much income it could bring in. His appraisers look at residential property based on competitive market analyses of recent sales prices only.