Replacement cost versus newly-built homes
Even a newly-built home’s replacement cost will normally be higher right after it has been completed. There are many reasons for this.
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Even a newly-built home’s replacement cost will normally be higher right after it has been completed. There are many reasons for this.
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The two values—market value and the replacement cost—are not the same value. Just because a home can be purchased for a specific price doesn’t mean that it can be rebuilt for that same cost.
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