The Replacement Cost Method can be used to appraise the value of transplantable landscape trees, shrubs, and vines. The Appraised Value of a landscape plant is based on the cost of re-planting a plant of the same or comparable species, condition, and size in the same location. Any removal and cleanup costs are added to obtain the total Appraised Value. For information on how to value a tree using the Replacement Cost method, a step-by-step approach, tutorial movie, and example are available. A color-coded sample of the Valuation tab using the Replacement Cost Method appears below:
To calculate the value of your tree using the Replacement Cost Method, complete the steps below:
Begin with the Structure and Health section. This section appears within the yellow box at the left-hand side of the screen above.
Enter structure and health values in the fields shaded in yellow. The values entered will need to be on a scale of 1-4 with 4 being the highest.
The system calculates the subtotals and Condition Rating in the white fields above.
Next, you will move to the Shared Valuation Fields in the center of the Valuation tab. These fields appear within the green box above.
The Species Factor in the pink field will be carried over from the Tree Code Setup module.
The Condition Factor in the yellow field will be carried over from the Structure and Health section.
Enter a dollar amount in the Installation Cost and Replacement Cost fields. These fields are shaded in green above
Enter a percentage in the Site Factor, Contribution Factor, and Placement Factor in the fields shaded in green above.
The Location Factor field in white will be calculated by the system. This represents the average value of the Site Factor, Contribution Factor, and Placement Factor percentage fields. The system calculates this value using the following equation:
For additional information on this valuation method, please reference the Replacement Cost tutorial movie.