Recent appraisal of a custom residential property in Denver, Colorado. The appraisal was related to establishing insurable value via the cost approach. Insurable value relates to the replacement cost new of the building improvements and/or site improvements and/or debris removal. This type of value can be requested by owners and lenders to establish what the estimated replacement cost new of the property is, if a catastrophic event were to take place on the property.
Understanding how and when to use the Cost Approach within real property valuation.