An Empirical Analysis of the Reliability and Precision of the Cost Approach in Residential Appraisal
Many articles and books have discussed the limitations of the cost approach to estimate market value or real estate. This article is the first to empirically measure the predictive ability of the cost approach to estimate value of single-family houses. Three hypotheses have been tested. The results indicate that the cost approach did not provide unbiased estimates of value, and the sales comparison approach estimated value more precisely. Additionally, cost approach precision was not significantly different for newer or older properties.
Volume (Year): 5 (1990)
Issue (Month): 1 ()
|Contact details of provider:|| Postal: |
Web page: http://www.aresnet.org/
|Order Information:|| Postal: Diane Quarles American Real Estate Society Manager of Member Services Clemson University Box 341323 Clemson, SC 29634-1323|
Web: http://pages.jh.edu/jrer/about/get.htm Email:
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Roger E. Cannaday & Mark A. Sunderman, 1986. "Estimation of Depreciation for Single-Family Appraisals," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 14(2), pages 255-273.
When requesting a correction, please mention this item's handle: RePEc:jre:issued:v:5:n:1:1990:p:67-74. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (JRER Graduate Assistant/Webmaster)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.