A method of appraising property based on the depreciated reproduction or replacement cost (new) of improvements, plus the market value of the site.
an estimated value based on the cost of reproduction or replacement of improvements, less depreciation, plus the value of the land, with land-value usually being determined by the market approach. definition of cost approach defined definition of appraiser's cost approach
An appraisal method based on the replacement or reproduction cost of a structure, less depreciation, plus land value.
One of the 3 major approaches to value estimation. It is based on the idea that the value of a property is equal to the value of the land plus the cost of all the additions less depreciation from all causes. GenÂerally people will not pay more for a property than it would otherwise cost to buy a similar site and build a similar addiÂtion upon it. Therefore, under stable market condiÂtions, this approach tends to set an upper limit to value.
One of the steps in the valuation process. The estimate of value by this approach is reached by estimating the value of the land and adding to this the improvements, less accrued depreciation.
Used by an appraiser to estimate replacement cost of improvements less depreciation on the property.
An approach to estimating the value of real property whereby the appraiser determines the production cost of the property, minus any accrued depreciation. This approach does not merely include the hard costs of construction, but includes all soft costs such as interest, permits, and fees. In sign appraisal this concept includes the cost of replacing the message delivered to viewers.
In order to estimate value according to the cost approach, the appraiser determines what it would cost to replace its building today, subtracts from that the value lost to physical deterioration and obsolescence, and then adds the value of the land.
It is an estimate of cost to replace or reproduce a house if this was needed.
A process of value estimation in which the appraiserâ€(tm)s estimated cost to replace the building and improvements on the subject property, less the depreciation is added to the estimated land value.
One of the three primary methods of valuation used by Appraisers. (Cost, Income, Market Data) Value estimate is determined by the cost to replace or reproduce the property's improvements new factored by depreciation plus the Market Value of the land.
One of the three approaches to value, the cost approach is based on the principle of substitution -- a rational, informed purchaser would pay no more for a property than the cost of building an acceptable substitute with like utility. The cost approach seeks to determine the replacement cost of an improvement less depreciation plus land value.
The cost approach to value is a method used to determine a property's fair value. Under the cost approach, fair value is found by separately determining the fair value of your land and adding it to the fair value of any buildings/structures located on that land.
The process of estimating the value of a property by adding to the estimated land value the appraiser's estimate of the replacement cost of the building, less depreciation. Return to Top of Glossary
a set of procedures that generates a value indication for a parcel by estimating the sum of the land value(that reflects the value of the site as if vacant and available to be developed to its highest and best use) and the depreciated value of the improvements(the current cost of constructing the improvements less any accrued depreciation).
A method used by an appraiser to estimate replacement cost of improvements less depreciation.
A method of appraising real property whereby the replacement cost of a structure is calculated using current costs of construction.
An Appraisal method to determine market value calculated by adding value less depreciation to the replacement value.
a method of estimating the fair market value of an improvement by estimating present reproduction cost and deducting depreciation.
Process of appraising the value of a property by adding the estimated value of the land to the appraiser's calculations of the replacement cost of the building, less depreciation.
An appraisal method where a property's value is estimated using the cost of the property plus cost of all improvements, minus depreciation.
The process of estimating the value of a property by adding the appraiser's estimate of the reproduction or replacement cost of property improvements, less depreciation, to the estimated land value.
An approach to Value applied by estimating the replacement or reproduction cost of improvements, less estimated accrued depreciation, plus the estimated market value of the land. Weight applied to this approach varies according to type of property.
An appraisal method estimating the replacement cost of a structure less the depreciation, plus the land value.
The method of estimating the value of property by: (1) estimating the cost of construction based on replacement or reproduction cost new or trended historical cost (often adjusted by a local multiplier); (2) subtracting depreciation and; (3) adding the estimated land value. The land value is most frequently determined by the sales comparison approach.
A set of procedures through which a value indication is derived for the fee simple interest in a property by estimating the current cost to construct a reproduction of, or replacement for, the existing structure; deducting accrued depreciation from the reproduction or replacement cost; and adding the estimated land value plus an entrepreneurial profit. Adjustments may then be made to the indicated fee simple value of the subject property to reflect the value of the property interest being appraised.
a general way of estimating a value indication of an individual asset by quantifying the amount of money that would be required to replace the future service capability of that asset.
With regard to appraisal; it is an analysis process in which a value estimate of a property is derived by estimating the replacement cost of the improvements, subtracting them from the estimated accrued depreciation and then adding back the land value. It is typically used when the other two approaches to value (sales comparison or income) are deemed as inappropriate, such as when the appraiser is valuating a special use building like a church. Also, it is considered inappropriate to use on older buildings.
In an appraisal, a method of establishing the market value of a property by considering how much the subject property would cost if it were to be built today plus land value and less accrued depreciation..