A Dynamic Approach to the Cost Method in Real Estate Appraisal

Rui de S. Camposinhos and Maria do Rosário Oliveira

Journal of Finance and Investment Analysis, 2019, vol. 8, issue 4, 1

Abstract: In this article, we presented a dynamic approach to the so-called cost method in real estate appraisal by simulating a project cash flow method and considering equivalent occurrence times instead of regular cash flows. The presented methodology does not introduce any difficulty of application since it simplifies the establishing of cash flows with the introduction of the concept of equivalent time allowing the appraiser to obtain sustainable values based on the real estate market rates. The goal is to address an easy to use more precise tool to find an appraisal value via the so-called Cost Method. Â JEL classification numbers: E32, H43, K25, L85, R30

Keywords: Real Estate Appraisal; Cost Method; Dynamic Approach (search for similar items in EconPapers)
Date: 2019
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