What Is Reproduction Cost?
Reproduction cost is the cost to construct an exact replica of a building today, using the same materials, design, and construction methods as the original — including any outdated or inefficient features.
Why it matters
Appraisers distinguish it from replacement cost (which uses current materials and modern equivalents) since reproduction cost can overstate the value of an older building with obsolete design elements.
Reproduction Cost vs. Replacement Cost
The cost to build an exact replica of the existing structure, using the same materials, design, and methods — including any outdated features.
The cost to build a structure of equivalent utility using current materials and modern construction methods — not an exact copy.
Most appraisals rely on replacement cost, since reproduction cost can overstate value by pricing in obsolete design choices a buyer wouldn't pay extra for.
Related Terms
More Commercial & Appraisal Terms
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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