Table of Contents
There are various techniques and approaches used by appraisers to determine the value of a property. One of these approaches, which is based on the current construction price, is essential to understand the dynamics in areas with high construction activity.
Key points
- ¿Qué es la «Cost Approach» (Enfoque de Costo)? It is a valuation methodology that focuses on determining how much it would cost to build an identical property under current market conditions.
- Different Valuation Approaches: There are various methods to value a property, some of them are:
- Income approach: It is NOT applicable in this case. It is based on the potential income that a property can generate.
- Comparative sales approach: NOT the correct one here. It focuses on comparing the property in question with other similar properties that have recently sold.
- Construction approach: Despite its name, it is NOT the method we are addressing.
- Cost approach: YES is the approach in question. Estimate the value of the property based on the cost of building a similar property under current conditions.
- Applicability of the Cost Approach: La «Cost Approach» es particularmente útil en áreas donde hay una alta actividad constructiva, ya que se basa en los costos actuales de construcción y materiales.
Conclusion
Entender los diferentes enfoques de valoración es esencial para aquellos involucrados en el sector inmobiliario. La «Cost Approach» ofrece una perspectiva basada en el costo actual de reconstrucción, siendo una herramienta invaluable en zonas con un dinamismo constructivo relevante.
