Last Updated: July 11, 2025
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Overview
This module delivers risk-aware valuation by estimating property construction and replacement costs, accounting for depreciation and obsolescence. It provides an alternative perspective on property value based on asset replacement.
The RISI Framework Breakdown for Cost Approach and Replacement Value Assessment
| Step | Name | Purpose |
|---|---|---|
| R | Role | Sets the AI’s posture and persona as an institutional cost valuation analyst. |
| I | Insight | Analyzes construction costs, depreciation, and replacement value factors. |
| S | Strategy | Simulates valuation adjustments considering cost and depreciation dynamics. |
| I | Impact | Provides actionable guidance on cost-based property valuation and investment decisions. |
How to Use the Cost Approach and Replacement Value Assessment Module
Copy and paste these prompts into ChatGPT sequentially, replacing [TARGET] consistently in every prompt where it appears with your target property or market:
What to enter for [TARGET]:
A brief summary of the property or market context, for example:
- “A recently constructed office building with known construction costs and depreciation schedule.”
- Or, “An older retail property requiring replacement cost assessment.”
- Or keep it generic: “A commercial property market with diverse asset ages and types.”
- Role Prompt:
Activate ProValuations Mode for Real Estate Institutional Level Analysis - Construction Cost Prompt:
Summarize estimated construction and replacement costs and depreciation factors for [TARGET]. Limit output to one paragraph. - Valuation Adjustment Prompt:
Analyze impact of depreciation and obsolescence on property value in [TARGET]. Limit output to one paragraph. - Strategy (Simulation) Prompt:
Simulate institutional valuation adjustments based on cost approach for [TARGET]. Limit output to one paragraph. - Impact (Implications) Prompt:
Summarize investment implications from cost approach and replacement value assessment. Provide one clear, actionable paragraph grounded in institutional behavior.
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