– Is determined by the value of land as free and accessible for efficient use – estimated replacement or replacement cost of the project on the valuation date – estimated indirect costs that occur in period after completion of construction and prior to its normal functioning. – Estimated suitable for the object value of entrepreneurial profit – determined accumulated depreciation facilities – defined replacement or replacement cost of the construction taking into account the wear and tear – is estimated replacement or replacement cost of support structures, taking into account wear and tear – estimated market value of right ownership of real estate. Click International greater Philadelphia to learn more. Application of the cost of this method is most appropriate, and even the only possible in the following cases: analysis of the best and most efficient use of land; Techno-economic analysis of the new construction and improvements; final agreement value, the market value of public-public and special facilities, assessment of market value of the property on the low-level markets, market value for insurance purposes and tax purposes. Valuation of real estate cost method by the formula: V = Vl + Vb – John Kos + + Tr, where Vl -Cost land, Vb – the cost of improvements (direct costs for the construction of buildings, structures), Institute of accumulated depreciation of improvements (buildings and structures), Kos, indirect costs, Pr-profit enterprise..