Section 5 Cost-of-Replacement Approach

• Library: Real Estate Fundamentals 2011

A third method available to real estate appraisers in determining value of real property is the replacement‑cost‑less‑depreciation method. Seldom used, this method may apply when little or no evidence of sales exists because of a special use or limited market, such as in the case of school buildings. Reorganized Sch. Dist. No. 2 v. Mo. Pac. R.R. Co., 503 S.W.2d 153, 157 (Mo. App. E.D. 1973).

In Culver-Stockton College v. Missouri Power & Light Co., 690 S.W.2d 168, 172 (Mo. App. E.D. 1985), the trial court held that...