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The current cost of building a replica of the subject structure, using the same materials and construction standards. Most appraisers estimate reproduction cost by the comparative cost method, in which estimates are made on the basis of the current cost to construct buildings of similar size, design, and quality. Other methods are the quantity-survey method and the unit-in-place method. Comparisons are usually made on a square-foot or cubic-foot basis.

Reproduction cost is not synonymous with replacement cost. Reproduction cost refers to exact duplication; replacement cost refers to a building that has the same functional ability but possibly is of different size, materials, or design. After arriving at the reproduction cost for a new building, deduct the amount of accrued depreciation due to physical, functional, and economic causes to complete the appraisal.
Dearborn Real Estate Education
This "Word of the day" is excerpted from The Language of Real Estate, 6th Edition by John Reilly (published by Dearborn Real Estate Education, 2006 copyright). To purchase the complete book, with over 2800 key terms and definitions, or to browse through Dearborn's hundreds of other professional real estate titles, including Real Estate Technology Guide by Klein, Barnett, Reilly, click here.