An estimate of value based on current construction costs, less depreciation, plus land value. Also see the Income Approach to Value and the Market Data Approach to Value.

One of the three main methods of appraisal (along with the income approach and the sales comparison approach), in which an estimate of the subject property's value is arrived at by estimating the cost of replacing the improvements, then deducting the estimated accrued depreciation and adding the estimated market value of the land.

A method in which the value of a property is derived by estimating the replacement cost of the improvements, then deducting the estimated depreciation, then adding the market value of the land.