cost

the word "cost" has many connotations. In accounting cost means the price paid at acquisition. In general conversation, cost may be used to describe the wholesale price. Appraisers, however, use cost to describe the cost to the consumer to construct the improvements being appraised as of the effective date of the appraisal. What “cost” means to appraisers is the current retail price to the consumer including all construction costs, builder profits, and marketing expenses.

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