Valuation Methods
Our appraisals are conducted using internationally recognized methodologies, ensuring accuracy and reliability for all stakeholders.
Three Approaches to Value
Each valuation method provides a unique perspective. We select and weight approaches based on property type and data availability.
Cost Approach
Replacement or Reproduction Cost
The Cost Approach estimates value by calculating the cost to replace or reproduce the asset, minus depreciation. This method is particularly useful for specialized properties and new constructions.
When to Use
- New or recently constructed properties
- Specialized or unique assets with no market comparables
- Insurance valuations
- Assessment of physical deterioration
Valuation Process
Estimate land value separately
Calculate replacement/reproduction cost
Deduct physical, functional, and economic depreciation
Add land value to depreciated improvement cost
Practical Example
For a newly built warehouse, we calculate the current cost to construct an identical building ($5M), subtract 10% depreciation ($500K), and add land value ($2M), arriving at a total value of $6.5M.