Appraisal Profession, Appraising

How Remaining Economic Life Works

If you're reading through an appraisal report, and you make it to the Cost Approach, which is where appraisers report either the reproduction or replacement cost of the home they are appraising, you will see a little field that says, "Remaining Economic Life". What does this number indicate? At first, you might be thinking that… Continue reading How Remaining Economic Life Works

Appraising, Helpful for FSBO, Helpful Info For Agents, Helpful to Homeowners, Home Repairs, Market Activity

How Depreciation Works

What is the primary reason a newly built home has a higher market value than the same home that is older? In a word, depreciation. What is depreciation? Simply stated, it is loss in value. There are three basic causes of depreciation for homes. Physical, functional, and external obsolescence. What do they indicate and how… Continue reading How Depreciation Works