The segregated-cost method

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The segregated-cost method is a more detailed method of estimate cost to replace than the comparative-unit method. If real estate developers never made mistakes when judging which properties will sell at a price equal to the cost of producing the properties (land, materials, labor, and normal, competitive profit to the developer) in competitive markets, "market value" and "cost of production" would be the same thing.

Reference no: EM134039757

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