Phil Keppel with Media West Realty explains the Cost Approach to real estate — a method used by appraisers, investors, and the insurance industry. Instead of just looking at comps, the Cost Approach asks: what would it cost to recreate the same home today?
For Phil’s current Magnolia Park listing at $1.4M, conservative estimates put replacement at $1.64M — giving buyers over $240,000 in instant equity.
*Numbers supplied are approximations and not guaranteed.
