true market value

[Brian Campbell]

I've read somewhere that true market value is what it would cost to build (replace) the house your looking at.

How realistic is this? If this is so, wouldn't you look at the value of the improvements only when pricing out the cost of replacement since you can't include the value of the land in this equation?

If this is indeed the true value, how should I go about pricing out what it would cost to replace it? Is it worth the time?

I think I am familiar with market values for my area in regards to what I am looking at, but with such fluctuation and bidding wars going on I think it prudent and frankly interesting to pursue this question.