To determine property value with the cost approach, the appraiser subtracts the accrued depreciation from the reproduction/replacement cost and then ______ the site value.

In the cost approach to property valuation, the appraiser first calculates the reproduction or replacement cost of the building. Next, they account for accrued depreciation, which reflects the loss of value due to factors like age, wear and tear, and obsolescence. After subtracting this accrued depreciation from the total cost of the structure, the appraiser adds the value of the site or land to determine the total property value.

This methodology works because it separates the value of the structure from the land value, recognizing that land typically does not depreciate in the same way as the building itself. The addition of the site value is critical for achieving a complete valuation that accurately reflects both components of the property. By doing this, appraisers can provide a comprehensive estimate that indicates the total worth of the property in the current market.