Replacement cost and market value
Language: English Series: Journal of Property Investment and Finance ; 27(6) 2009, 593-602(10)Publication details: 2009Subject(s): Summary: 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.| Item type | Current library | Call number | Copy number | Status | Barcode | |
|---|---|---|---|---|---|---|
| Journal article | London Journal article | L148781 (Browse shelf(Opens below)) | 1 | Available | 148781-1001 |
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.