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Is a replacement cost estimate different from a real estate appraisal?

April 26, 2017appraisal different estimate Real Estate

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Is a replacement cost estimate different from a real estate appraisal?

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Yes. While a real estate appraisal determines the market value of your home, a replacement cost estimate determines the reconstruction cost of your home should a major loss occurs. Depending on the local market, rebuilding your home could cost more or less than the homes current market value. Reconstruction cost includes many variables of construction that are not included in a real estate appraisal.