TRIAL STRATEGY AND TECHNIQUES USING THE COST LESS DEPRECIATION APPROACH TO VALUATION

This discussion of the strategy and techniques employed or employable in cases involving unique or special-purpose properties where both parties have elected to use the cost approach, treats the use of the cost approach in a variety of situations where the worth of the method as evidence has been tested in comparison with other indicia of "fair market value". The terminology used in this area is defined, the uses of cost approach are compared, and comments are made on the use of cost manuals. It is noted that cost as evidence of market value should be limited to cases where: the property involved is unique; it is a specialty; or there is competent proof of an absence of market data. Strategic and tactical considerations are discussed. Strategy and techniques related to church valuation, unique industrial takings, replacement cost valuation of industrial use, comparable sales versus cost approach, capitalization versus cost approach, and the Champion Brick case are illustrated. It is observed that the cost approach endures because of its frequent use in the solution of problems caused by fire losses and utility applications for rate increases and because, in rare instances it is the only method of estimating value in eminent domain.

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• Supplemental Notes:
  • A supplement to this paper by J.M. Montano was published in Addendum 1, June 1979, pp 346-S1 through 346-S3.
• Corporate Authors:

  Transportation Research Board

  500 Fifth Street, NW
  Washington, DC  United States  20001
• Authors:
  • Buscher, J D
  • Lehmann, C H
• Publication Date: 1976

Language

• English

Media Info

• Pagination: p. 321-345
• Serial:
  • Selected Studies in Highway Law
  • Volume: 1
  • Publisher: Transportation Research Board

Subject/Index Terms

• TRT Terms: Case studies; Costs; Courts; Depreciation; Eminent domain; Land values; Market value
• Subject Areas: Finance; Highways; Law;

Filing Info

• Accession Number: 00148913
• Record Type: Publication
• Files: TRIS, TRB
• Created Date: Aug 28 1998 12:00AM