Why is there no option for “attached” dwellings?

Q. Why is there no option for “attached” dwellings?  

A. While intuitively, it may seem like the mere fact that constructing dwellings that share one or more common walls should significantly reduce Replacement Cost New (RCN), our research on the issue indicates there are little or no savings. There may be higher costs due to upgraded or additional materials required (e.g., higher quality insulation, sound-dampening drywall, staggered studs, double walls, etc.). There might also be extra labor costs to complete these items and meet current building codes.

A casual glance at the issue may give the impression that builders are constructing attached units because it saves on construction costs. However, developers are making these decisions because it allows for greater density levels, many more units per net acre, and usually increased profit to the developer. In some cases, builders may lower the overall quality of these units to meet minimum market expectations at a particular price point; however, this is a quality issue that appraisers should address with the quality rating (e.g., 3.0 instead of 3.5). The impact of much higher density typically impacts SITE VALUE rather than the overall COST to build the improvements.

Some users have suggested we add an “attached” or “semi-detached” button to the application. However, we feel this would be nothing more than a “placebo” that would compromise our ultimate goal of quickly providing you with the most accurate RCN estimate.

Adding a “meaningless” step to the process runs contrary to the mission of keeping the process as fast and straightforward by never adding items that require you to spend your valuable time answering unnecessary questions (that’s the other guys). Calculating Replacement Cost New (RCN) for the Cost Approach does NOT require you to calculate the cost of what currently exists on the site. We are required to estimate the cost of a market-suitable “replacement” (a building having usefulness equivalent to the building being appraised but constructed with modern materials and according to current standards, building codes, layout, and design on the Effective Date of Appraisal).

Once again, our goal is to require you only to input information vital to the “replacement” cost estimate based on your observations about overall quality. You are the local expert – you have seen the property – and YOU are in the best position to estimate what the quality rating of an “equivalent” dwelling should be.