Appraisal Scenario for Replacement Cost Method

A 5 in. (13 cm) diameter Skyline Thornless Honey Locust was accidentally cut down when a neighbor had his driveway widened. The tree is rated as follows:

1. Species 90%
2. Condition (structure, health)
   • Roots: 3, 3
   • Trunk: 4, 3
   • Scaffold branches: 4, 4
   • Twigs: 3 (health)
   • Foliage: 3 (health)
3. Location
   • Site: 85%
   • Contribution: 80%
   • Placement: 75%

The replacement tree costs for 5 in. trees from three local nurseries were $745, $760, and $780. The installation cost was $1,800. Removal and cleanup costs were estimated to be $90.

Replacement Value: $1,640

Note:  The figures in this example correspond with the color-coded Valuation tab above.