square foot method

is the least detailed of the cost estimating methods and is the one used by appraisers. In this method costs are established on a per unit basis such as the square foot or cubic foot. Appraisers will identify the “cost per square foot” associated with size and style of improvement being appraised and simply multiply the cost per unit times the number of units (square feet) in the structure. When using this method it is important to identify the cost of the main structure (GLA) and identify separately the cost associated with parts of the structure that vary from house to house.

For example, not all houses have basements, garages, fireplaces, or screened porches. The cost of those items must be calculated separately so that the square foot method may be applied to variety of structures within a grouping of houses.

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