Cost is the amount of money required to reproduce or replace a commodity. In real estate Cost is the total amount to reproduce or replace an improvement.
Cost is the sum of:
|•||The site, site improvements, and site development costs|
|•||Labor and materials to build the improvement|
|•||Overhead and selling costs|
If a buyer paid $100,000 for a new house, the price of the house is $100,000. The cost of the house is most likely $100,000. It is likely (but not certain) that the value of the house approximates the price and the cost of the house.