http://www.mortgagenewsdaily.com/8312007_Home_Prices.aspThe OFHEO House Price Index (HPI) usually doesn't get too much attention (except here where we regard it as the best, or at least the most interesting of the periodic housing indicators) but this time around people began anticipating it days before itenCommunityServer 2008 SP2 (Build: 31106.96)http://www.mortgagenewsdaily.com/8312007_Home_Prices.asp#8621Fri, 31 Aug 2007 11:00:00 GMT2bb7a989-b681-446d-a7f2-bd5f0562f228:8621BTo sam who wanted to understand property valuations (aka appraisals). Replacement Cost Method is determined by what it will cost to build that home today-Usually determined using square footage of the home and a cost per square foot to build that is applicable. The Income Approach is most commonly used on investment properties and values the property based on what income (aka rent) can be received. see next posting for comparable method.<br /><br />Comparison Method&#39; is the method most commonly used as the best value method by lenders uses recent sales of similiar properies in the area. Adjustments (plus and/or minus) are made to make each property comparable to the one being evaluated and determine the value. For example, a comparable property would have an adjustment to compensate for a higher or lower square footage than the subject property being valued.<div style="clear:both;"></div><img src="http://www.mortgagenewsdaily.com/aggbug.aspx?PostID=8621" width="1" height="1">