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At e2Value, we look at the entire structure and follow the principle found in any appraiser’s book of procedure: To value any item, you need to value the item where the owner of the item “shops.” In other words, compare like items to like items, which is also called “comparables.”

The replacement cost software in 1999 was not providing accurate costs time after time. e2Value’s co-founders envisioned a better way and developed an accurate, easy-to-use software based on the economic approach to valuation. Download the Economic Approach to Valuation whitepaper for an explanation of the background and principles of this methodology.

Read what milk, shirts and cars have in common with replacement costs for structures.