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RES 450 Week 4 DQ 1

RES 450 Week 4 DQ 1

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RES 450 Week 4 DQ 1 -

The Cost Approach 

Your friend owns an old Victorian home that is considered a historical site. He tells you that he just bought fire insurance that will cover loss to replace the home in case of a fire. He’s not sure if the coverage limit will be enough, so he’s asked your opinion about the situation. In 250 - 300 words, give your friend a recommendation as you tell him about the cost approach: 

  1. List the five basic steps in the cost approach.
  2. Define the terms reproduction cost and replacement cost, and explain their use in appraisals.
  3. Name four methods of estimating costs and explain when each is used.
  4. List the direct and indirect costs that make up a building’s total costs.
  5. Name the important site, location, and design features that influence the construction costs of a building.

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