**How much is a building worth?**

It's an important question. It's the question you ponder when you think about selling a building or when you see a potentially good deal on the buildings market or forum and you wonder are you going to benefit from this deal or are you going to get ripped off?

I have been thinking about this and using a simple method to gauge the value of a building I am finding that a lot of people seem to be getting ripped off, so by publishing my findings I am hoping to either 1. Find someone who reviews my method and finds a flaw in it's logic/calculation and/or 2. Help other people NOT get ripped off!

So to gauge the value of a building I believe the absolutely correct way to do it is basically to calculate how much profit a building would produce for you per day and then multiply that number by the number of days it would take for you to build and expand that building yourself to see if the cost to buy the building up front is greater or not.

Lets take the most simple example- a power station. Since it only has one output, which requires no inputs except a fixed amount of cash and it's output's value is subsidized by NPC market it is the best building to make a concrete value calculation on.

For this example, let's use a

**5,000 m2**power station in Germany and your rank is Big Industrialist.

Therefore, this building produces

*607,807.45*units of power per hour - each unit costs

**$0.03**to produce

Also, the amount of money you can sell each unit for on the open market is pretty much capped at

**$0.24**. This is because the most anyone would pay for your power is

**$0.26**(which people usually do) since if you go any higher they'll just buy from the fixed NPC price of

**$0.27**. And when you factor in the 10% market commission you go home with

**$0.24**per unit of power.

Using these figures we can determine that this power station can produce a revenue of

**$3,863,850.91**per day (

*607,807.45 * 24 * 0.24*) at a cost of

**$482,981.36**(

*607,807.45 * 0.03*). The difference amounts to

**$3,380,869.55**which is pure profit you make each day you manage to keep this guy pumping power for 24 hours.

Ok, so now we have a concrete figure of how much profit you'd get out of this building if you bought it right away and starting pumping power for sale on the marketplace.

But what if you wanted to build and expand this building yourself? How much would that cost and how many days would it take? This is even simpler to answer:

Cost of new 20m2 Power Plant in Germany =

**$237,500**

For each m2 you wish to expand, you must pay

**$5,938**and supply

*211*units of stone,

*106*units of steel,

*22*units of wood and wait 30 minutes (some of these figures depend on your rank).

And let's assume you are buying all these raw materials from the NPC (

**$26 Stone, $135 Steel, $75 Wood**)

The end result is for 4,980 m2 expansion you end up paying

**$138,128,266**after you also hire the new employees and you would have waited a little over

**104 days**

Finally, if we take the profit this building would produce:

**$3,380,869.55**

Multiply it by the number of days it would have taken you to build/expand one yourself:

*104 days*

You get:

**$351,610,432.99**

Then if you add the setup cost for building it yourself:

**$138,128,266.00**

You end up with the magic figure of:

**$489,738,698.99**

*This figure is the maximum you should ever consider paying for this building!*

Simply because if you spent a penny more buying this building up front you would never make up for the fact that it took you longer to recover the costs of buying this building from someone else than it did if you had patiently built it yourself and waiting for it to expand.

Yet I see people paying a lot more for such buildings all the time!! It makes no sense....

Now when it comes to other buildings it can get a bit tricky - inputs vary in prices, outputs vary in prices (especially when you consider selling output to stores rather than market) and there are always contests to consider. But using this simple obvious method and using current stable market prices of goods you can get a good idea what a fair value of a building really is.

IF you found something wrong in my logic/math PLEASE let me know so I can update and learn because this is also a lesson for me. You know the saying about never knowing something well unless you can explain it to someone else!

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