What is meant by Reproduction Cost New?

Reproduction Cost New refers specifically to the cost of recreating an existing structure to exact specifications, using the same materials and craftsmanship that were used in the original construction. This concept emphasizes the precise duplication of all architectural details, materials, and features, regardless of whether they are considered modern or outdated.

In the appraisal field, this technique is crucial for valuing unique or historically significant properties where maintaining original characteristics is vital. It differs from simply building a new structure, which could incorporate modern building practices and materials that may not accurately reflect the original design. Understanding reproach costs helps appraisers when assessing buildings' value, particularly for heritage properties or those with distinctive architectural features. Other options address broader concepts or different aspects of real estate valuation, which do not align with the specific definition of Reproduction Cost New.