cost approach appraisal


The process of estimating the value of a property by adding to the estimated land value the appraiser's estimate of the reproduction or replacement cost of the building, less depreciation. The cost approach bases the value of a property on the cost of replacing it, not on the value of other homes in the area or on its ability to generate income.

Use this term in a sentence

You should try and take on a cost approach appraisal that may lead you in the right direction of greater profits.

​ Was this Helpful? YES  NO 4 people found this helpful.

The cost approach appraisal was a really cool thing and we all wondered how it would work for us and allow us to grow.

​ Was this Helpful? YES  NO 9 people found this helpful.

We did a cost approach appraisal as we liked to make sure everything was properly as we expected it to be before making any decisions.

​ Was this Helpful? YES  NO 5 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
cost analysis cost approach improvement value