Jan 06 , 2016

Tampa School of Real Estate

Cost-depreciation Approach

Definition:  A system for estimating the market value of property based on the cost to buy the site and to construct a new building on the site, less depreciation.

Pronunciation:   \ˈkȯst\ \di- prē-shē-ˈā-shən\ \ə-ˈprōch\

Used in a Sentence:   The contractor used the cost-depreciation method to calculate the cost to construct a building on the site.