replacement value meaningless?

[scaredyclassic]

I’ve been dealing with sme real estate agents who pitch various houses with the “well, you couldn’t even build it for the price it’s selling for”. I don’t engage in arguemtn or even spirited discussionw ith any agents, because it gives me a headache. But I have been somewhat persuaded by that argument previously and it’s made me come closer to beginning to make offers on some properties. The more i think about it though, the more i come to think that replacement value in our current economy means nothing, or at least no more than saying, well, it sold for 2x back in 05, so she’s a bargain… the reaosn i think that may be true is if the cost of labor, and materials deflates, replacement value will trend down too. it kind of assumes that everyone is going to make the same wage in the future, and that costs will be the same. not saying replacement value will definitely go down, just saying, the argument that a house is a good deal because it wouldcost more to build it now makes a lot of assumptions that may not necessarily be valid.

[NotCranky]

Replacement cost is not a controlling factor against price declines. As is obvious, it will limit new production which eventually brings replacement cost back as a predominant factor in supply demand issues. If demand fades into oblivion, replacement cost won’t matter a bit. Think “Ghost Town”

[NotCranky]

Replacement cost is not a controlling factor against price declines. As is obvious, it will limit new production which eventually brings replacement cost back as a predominant factor in supply demand issues. If demand fades into oblivion, replacement cost won’t matter a bit. Think “Ghost Town”

[NotCranky]

Replacement cost is not a controlling factor against price declines. As is obvious, it will limit new production which eventually brings replacement cost back as a predominant factor in supply demand issues. If demand fades into oblivion, replacement cost won’t matter a bit. Think “Ghost Town”

[NotCranky]

Replacement cost is not a controlling factor against price declines. As is obvious, it will limit new production which eventually brings replacement cost back as a predominant factor in supply demand issues. If demand fades into oblivion, replacement cost won’t matter a bit. Think “Ghost Town”

[NotCranky]

Replacement cost is not a controlling factor against price declines. As is obvious, it will limit new production which eventually brings replacement cost back as a predominant factor in supply demand issues. If demand fades into oblivion, replacement cost won’t matter a bit. Think “Ghost Town”

[waiting hawk]

plus the replacement cost dont matter on a house in the 70 or 80s when after the house would be new. The replacement cost goes down when you use old would and free used cabinets from a 70’s tear down 😉

[waiting hawk]

plus the replacement cost dont matter on a house in the 70 or 80s when after the house would be new. The replacement cost goes down when you use old would and free used cabinets from a 70’s tear down 😉

[waiting hawk]

plus the replacement cost dont matter on a house in the 70 or 80s when after the house would be new. The replacement cost goes down when you use old would and free used cabinets from a 70’s tear down 😉

[waiting hawk]

plus the replacement cost dont matter on a house in the 70 or 80s when after the house would be new. The replacement cost goes down when you use old would and free used cabinets from a 70’s tear down 😉

[waiting hawk]

plus the replacement cost dont matter on a house in the 70 or 80s when after the house would be new. The replacement cost goes down when you use old would and free used cabinets from a 70’s tear down 😉

[jpinpb]

Exactly. Think ghost town:

Homes destroyed

[jpinpb]

Exactly. Think ghost town:

Homes destroyed

[jpinpb]

Exactly. Think ghost town:

Homes destroyed

[jpinpb]

Exactly. Think ghost town:

Homes destroyed

[Author]

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