How do you determine (calculate) replacement value for a 2 unit townhouse in Park Slope?

Asked by Xxxx, Brooklyn, NY Fri Jan 14, 2011

We had a recent appraisal on our house at $1,275 million. The replacement value was $670,00. That seems high to us. It shouldn't cost that much to rebuild a four-story townhouse (with basement)

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Jack Menashe, Agent, Brooklyn, NY
Fri Jan 14, 2011
You have a 2 fold question - one is insurance, to confirm rates and values please try David Salem, Vice-President at Insurance Solutions - davids@insurancesolutionsny.com I also found values and costs to differ on policy and reality but he can explain how they get to the values and replacement costs.

Your other question requires a contractor and estimates, perhaps an architect as well. jovadia@ovadiadesign.com is a talented & knowledgeable architect, but finding a qualified builder is important - get quotes... Hope this helped.

Regards,

Jack Menashe
917.797.0215
http://www.SHERestates.com
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Mitchell Fel…, Agent, Brooklyn, NY
Fri Jan 14, 2011
Dear Xxxx:

The appraised value is an estimate of how much a buyer would be willing to pay for the house in todays market. This is different than the replacement value which is how much it would cost to rebuild the if it were destroyed (like in a fire).

You may already know all this. Here in many parts of Brooklyn, especially in Park Slope, the market value is much higher than the actual replacement value because of the high demand for homes in the area. This holds true even in a down market.

Most people would be safe. With a $675000 replacement value estimate, in the end it also depends on how expensive your tastes are ! :)

Sincerely,
Mitchell Feldman
Madison Estates & Properties, Inc.
(718) 645-1665/ (917) 805-0783
MitchellSFeldman@aol.com
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