How does one determine the “replacement value” of a house? I'm talking about the structure and not the contents. I spoke with the insurance company about this, and they say they use a formula, and the formula accommodates appreciation, but it seems to differ widely from reality.
As example, I recently spoke with an architect and they claimed that around here anyway, residential building costs are about $200 per sq foot. According to the insurance company, the “value” of the house is approximately half of that. So how do you figure out the real value??
03-10-2006, 12:55 PM
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