Before exploring how to choose a replacement cost valuator tool, one must understand exactly what a replacement cost valuator tool is.
What Is a Cost Valuator Tool?
A replacement cost valuator tool is a book, program, or guide designed to help homeowners estimate the replacement cost value of their home. Homeowners may need to determine their replacement cost for several different reasons. Putting a dollar figure on how much it would cost to rebuild your home in the event of a total loss is nearly an impossible task to undertake on your own. Thankfully, homeowner’s have a number of different valuation tool options they can explore.
Do Your Research
Before selecting a replacement cost valuation tool, it’s important to research a few imperative aspects. The most important characteristic to consider is who developed the valuation tool. What are the credentials of the parties involved in the design and build of the valuation tool? You’ll want to ensure the tool you select was designed by a company or individuals with knowledge and experience in home valuation and market research.
How Frequently Is the Tool Updated?
Once you’ve found a tool that was designed by a reputable company, you’ll need to research how often the tool is updated. Markets, trends, costs, and inflation all fluctuate and can significantly impact replacement cost valuation if not captured correctly or updated regularly. You’ll want to ensure the valuation tool used is updated on a minimum of an annual basis to ensure the most accurate costing is captured. Some tools available may be developed by reputable companies with accurate, extensive research and data captured, but are updated every five years. Markets and trends can change drastically over the course of a five-year time period. It’s important to ensure your valuation calculator is as current as possible to ensure accuracy in your replacement cost value.
What Market Does the Cost Valuation Tool Represent?
Additionally, you’ll want to consider where the tool was developed, and for what market. Utilizing a valuation tool that was developed in the US to capture the replacement cost of your home in Canada will not generate accurate results. The tool you select should take geographic location into consideration. American costs, markets, and trends are vastly different from those in Canada. Selecting a tool that captures data relevant to your market and location is important.
The Douglas Residential Cost Guide Was Developed for Canadian Homeowners
The Douglas Residential Cost Guide was developed by industry experts with over 30-years of valuation experience; it was developed by Canadians, for Canadians, examining Canadian markets and trends, utilizing Canadian data. Douglas Residential Cost Guide was developed with users in mind to ensure not only ease of use, but accurate results. Try the Douglas Residential Cost Guide today to ensure your home’s value is fully captured.