Pub. 4 2014-2015 Issue 1

O V E R A C E N T U R Y : B U I L D I N G B E T T E R B A N K S - H E L P I N G C O L O R A D A N S R E A L I Z E D R E A M S July • August 2014 17 FEATURE ARTICLE TODD RISSEL CHAIMAN AND CEO e 2VALUE, INC. “The value developed by market value approaches that use the cost approach will result in the replacement cost minus depreciation, which makes the end result an “Actual Cash Value.” Determining Replacement Cost Values for Houses A dvertisements often feature images that are meant to evoke specific emo - tional responses in prospective buyers. Sometimes the response is meant to be negative—picture a cluttered mail room or a pile of dirty dishes—and sometimes it’s meant to be positive—mountain ranges, setting suns and gently flowing rivers are some examples. Promotions that feature a house next to a lake or the ocean usually include a bright or, perhaps, a colorful setting sun. Conversely, news images of ruined homes, businesses and neighborhoods often seem to have dark, foreboding skies as backdrops. Lately, it seems, there are increasing numbers and frequency of images of disas- ter areas. After the initial flood clean-up, in - surance companies and banks are involved to finish the clean-up and help return the damaged house to its pre-disaster state.  Replacement Cost  continued on page 18