Replacement means comparable usefulness; reproduction means a duplicate. Both use current construction costs, not the original building bill. See the official appraisal glossary for these definitions.

Suppose an older building has elaborate original details. A modern substitute serving the same purpose suggests replacement. Recreating those details suggests reproduction. Neither figure, by itself, is the property's market value.

In a cost-approach exercise, identify the stated cost first; consider depreciation and land separately. The question's wording matters here. Return to the Chapter 17 appraisal guide to connect that distinction with the complete approach.

Try the replacement and reproduction cost practice worksheet

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