Types of Cost

  Previous topic Next topic JavaScript is required for the print function  

There are two types of cost analyses

 

Reproduction cost
Replacement cost

 

Replacement cost is the cost to construct a building with equivalent utility at current prices, materials, standards, design and layout.  Replacement cost is almost always the method of estimating cost in a residential appraisal.

 

Reproduction cost is the cost to construct an exact duplicate of a building at current prices using the same materials, standards, design, layout and quality, and embodying all the subject's deficiencies, superadequacies and obsolescence.  Reproduction cost is almost never used in a residential appraisal.  Evaluating cost by the reproduction method is not included in this course.

Page url: http://www.georgiaappraiser.com/glossary/index.html?typesofcost.htm