[Translation] NUMBER ONE Success System

[Tommy Lee]

http://www.noss123.com/


The *Cost Approach* was formerly called the summation approach. The theory
is that the value of a property can be estimated by summing the land value
and the depreciated value of any improvements. The value of the improvements
is often referred to by the abbreviation RCNLD (reproduction cost new less
depreciation or replacement cost new less deprecation). Reproduction refers
to reproducing an exact replica. Replacement cost refers to the cost of
building a house or other improvement which has the same utility, but using
modern design, workmanship and materials. In practice, appraisers use
replacement cost and then deduct a factor for any functional disutility
associated with the age of the subject property.

In most instances when the cost approach is involved, the overall
methodology is a hybrid of the cost and sales comparison approaches. For
example, while the replacement cost to construct a building can be
determined by adding the labor, material, and other costs, land values and
depreciation must be derived from an analysis of comparable data.

The cost approach is considered reliable when used on newer structures, but
the method tends to become less reliable for older properties. The cost
approach is often the only reliable approach when dealing with special use
properties (e.g. -- public assembly, marinas).

By participating in* Number One Success System* and willingly giving a gift
to one or more of its participants, the donor of such a gift has chosen to
extinguish all rights to the gift and cannot rightfully expect or depend on
*Number One Success System* or any of its participants for any type of
monetary compensation.
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