cancel
Showing results for 
Search instead for 
Did you mean: 

what is cost approach appraisal?

tag
SantaMar
Regular Contributor

what is cost approach appraisal?

spoke to my LO today.  appraisal came back with 5k above asking price but cost approach appraisal came back at 21k over asking price.  he just called me to explain that this rarely happens and insisted that we have a fantastic deal on our hands.  what does the cost approach mean?

Message 1 of 3
2 REPLIES 2
Walt_K
Senior Contributor

Re: what is cost approach appraisal?

http://en.wikipedia.org/wiki/Cost_approach


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Message 2 of 3
dpechal
Regular Contributor

Re: what is cost approach appraisal?

From what I understand, the price to rebuild an exact replica of your house with the land included, would be 21k more than the asking price.  So if they were asking 50k, than the house would cost around 71k to be rebuilt exact to spec's. Someone please correct me if I am wrong, but sometimes the dictionary explanation can be confusing Smiley Frustrated.

***$25,500******$20,000******$20,000******$20,000******$15,000********NPSL****

Message 3 of 3
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.