Cost approach - real estate - usa

This is a set of procedures in which a value of the fee simple interest in a particular piece of real estate is dervied by estimating the current cost to construct a reproduction of (or replacement for) the existing structure, this includes the entrepreneurial incenvtive, while deducting depreciation from the total cost, and adding the estimated land value. Adjustments may then be m ade to the indicated fee simple value piece of real estate  to reflect on the value of the property interest being appraised.