Replacement
Value

The assignment concludes a replacement-cost or replacement-value figure under a defined definition and intended use — what it would cost to replace the improvements as of the effective date, under the stated assumptions. The definition, what is included (and excluded), and the intended use are confirmed up front. The deliverable is a written report documenting the scope, definition, and conclusion.

Owners, insurance advisors, and accountants use replacement value determinations to inform insurance or accounting questions about a property. For example, an owner may want a supported replacement cost to inform a coverage discussion. The specific question defines the analysis; confirm the precise requirement with the party who will rely on it.

The analysis considers the improvements, their characteristics and condition, the applicable definition and intended use, and what the definition includes or excludes. The cost approach is typically central, but the methodology depends on the definition. The conclusion is specific to the defined question and is not a market value or a coverage recommendation.

We begin by discussing the specific replacement question to confirm the definition and scope. After agreeing on scope, we inspect or review the property, research relevant cost information, analyze the data, and deliver a written report stating the definition and conclusion. Scope, fees, and timing depend on the property and the definition applied.