Start Date
6-4-2018 11:15 AM
End Date
6-4-2018 12:00 PM
Description
This presentation will explain how the replacement cost method is applied by municipalities in the Netherlands using nationally collected data on both building costs and depreciation. For real estate where there is no genuine market, such as schools and hospitals, the Act for Real Estate Assessment requires the use of the replacement costs method. As many municipalities are too small to collect all relevant data needed for this valuation method, a central organisation is established to collect, assess and distribute this data. By using electronic messenger services that connect the municipal valuation systems with the central database, the local appraiser can easily import the data to do the valuation. This enhances efficiency, but also uniformity in the valuations. During our presentation we will discuss how municipalities benefit from the national data and how the Netherlands Council for Real Estate Assessment monitors the quality of the valuations.
Publication Date
April 2018
Recommended Citation
Kathmann, Ruud M., "Replacement cost and depreciation: A national or local affair?" (2018). International Research Symposium. 1.
https://researchexchange.iaao.org/irs/irs18/sessions/1
Replacement cost and depreciation: A national or local affair?
This presentation will explain how the replacement cost method is applied by municipalities in the Netherlands using nationally collected data on both building costs and depreciation. For real estate where there is no genuine market, such as schools and hospitals, the Act for Real Estate Assessment requires the use of the replacement costs method. As many municipalities are too small to collect all relevant data needed for this valuation method, a central organisation is established to collect, assess and distribute this data. By using electronic messenger services that connect the municipal valuation systems with the central database, the local appraiser can easily import the data to do the valuation. This enhances efficiency, but also uniformity in the valuations. During our presentation we will discuss how municipalities benefit from the national data and how the Netherlands Council for Real Estate Assessment monitors the quality of the valuations.