The difference between hypothesis development method and cost approximation method

The difference between the hypothetical development method and the cost approximation method is that the valuation time point of the cost method is generally after the real estate development is completed, while the valuation time point of the hypothetical development method is generally when the land is purchased. According to the query of relevant public information: the hypothetical development method (residual method) is one of the real estate valuation methods. It refers to the use of hypothetical development method to evaluate the value of real estate to be developed. Specifically, there are discounted cash flow method and traditional method, which are used in land valuation. Also known as the residual method, the cost approximation method is based on the sum of the various expenses incurred in acquiring and developing land. The difference between the hypothetical development method and the cost approximation method is that the valuation time point of the cost method is generally after the completion of real estate development. , it is assumed that the valuation time point of the development method is generally when the land is purchased.