Why is there a difference between my home's Market Value and its Replacement Costs?
Different factors drive Market Value and Replacement Cost, so the two values may not change at the same time, at the same rate, or even the same direction.
Local supply and demand of real estate
Housing trends and forclosure rates
Replacement Value is the expected cost to rebuild your home with the same kind and quality of materials on the original site. This value is driven by:
Local construction material, equipment and labor costs
Evolving construction codes