Replacement cost and market value
Wyatt, Peter
Replacement cost and market value - 2009 - Journal of Property Investment and Finance 27(6) 2009, 593-602(10) .
Is the replacement cost method (RCM) compatible with a market basis of value? Several definitional and methodological problems arising from the current valuation standards and guidance relating to the replacement cost method (RCM) raise this question.The RCM is used to value properties for which there is no market. Market value assumptions do not hold in the case of the RCM. Requiring inputs to be based on market evidence is neither practicable nor sufficient justification to regard the output as market value. References. Further Reading.
RICS VALUATION STANDARDS
INTERNATIONAL VALUATION STANDARDS
United Kingdom
Replacement cost and market value - 2009 - Journal of Property Investment and Finance 27(6) 2009, 593-602(10) .
Is the replacement cost method (RCM) compatible with a market basis of value? Several definitional and methodological problems arising from the current valuation standards and guidance relating to the replacement cost method (RCM) raise this question.The RCM is used to value properties for which there is no market. Market value assumptions do not hold in the case of the RCM. Requiring inputs to be based on market evidence is neither practicable nor sufficient justification to regard the output as market value. References. Further Reading.
RICS VALUATION STANDARDS
INTERNATIONAL VALUATION STANDARDS
United Kingdom