Respond to the following:
Overview
    The three key concepts discussed in this week’s reflections summary are the Classification of Houses, the Basics of the Cost Approach, and the Application of the Cost Approach. Chapter 7, Classification of Houses and the four characteristics of a house. Chapter 8, Basics of the Cost Approach and Application of the Cost Approach. Basic of the cost approach and how it is used in the appraisal process. Application of the Cost Approach discusses how and why it is used in newer properties only. 
Key Concept from Chapter 7
    Chapter 7, Residential Construction, Classification of Houses. There are four characteristics of a house. The number of units, whether the building is attached or detached, the number of stories and the architectural style. “The Number of Units refers to the number of separate households the building is designed to accommodate. Although usage may vary in different areas, the term ‘house’ is most often used to refer to a Single-Family Residence” If a building has multiple units that share a common access and other common areas, it is usually referred to as an Apartment Building (Walt, et al., 2018, p. 215). A detached house is a house that is not attached to another property. An Attached House refers to one property that is attached to another. Row houses are common in many urban areas and are a great example of attached properties. 
Key Concept from Chapter 8
    Chapter 8, Cost Approach to Value, Basics of the Cost Approach. This subsection of Chapter 8 discusses the cost approach and how it is used in appraisal. Appraising a property takes skills and formulas. “The Cost Approach Method is an orderly process which assumes that the value of improved property is indicated by the value of the site, plus the cost (new) to construct the improvements, less any depreciation from any cause that the improvements have suffered. Depreciation is in the difference in value between the cost (new) of the improvements and their current value, regardless of the reasons for the difference (Walt, et al., 2018, p. 253). Value = Cost – Depreciation
Key Concept from Chapter 8
    Chapter 8, Cost Approach to Value, Application of the Cost Approach. “The cost approach to value is the best approach for service type of buildings where there are few comparables and the income is not appropriate” (Walt, et al., 2018, p. 253). The cost approach is best used for newer structures. This is because the older the structure, the less reliable the approach is. This is because the determination of accrued depreciation is subjective. 
Summary
    In Chapter 7, I learned about Residental Construction. There are four characteristics of a house. The number of units, whether the building is attached or detached, the number of stories, and the architectural style. In Chapter 8, I learned about the Basics of the Cost Approach and Application of the Cost Approach. The Cost Approach is a process that is orderly and assumes value. The Application of the Cost Approach is the best approach to service type, but if a property is too old, there are better approaches to use due to depreciation.