Property Valuation
Replacement cost in the cost approach is the cost to construct:
AAn exact replica of the subject building using original materials
BA building of equivalent utility using modern materials and methods✓ Correct
CThe least expensive building that could replace the subject
DThe improvements as they currently exist, without changes
Explanation
Replacement cost is the estimated cost to construct a building of equivalent utility using modern materials and current building techniques. This differs from reproduction cost, which is the cost to build an exact replica.
Related Arkansas Property Valuation Questions
- In an appraisal, an adjustment for a comparable sale that is SUPERIOR to the subject property results in:
- A comparable home sold for $200,000. It has a garage worth $10,000 that the subject property lacks. The adjusted sale price of the comparable is:
- External obsolescence in property valuation is caused by:
- Depreciation in appraisal refers to:
- The income approach to value is most commonly used to appraise:
- Market value is best defined as:
- External (economic) obsolescence differs from other forms of depreciation because it is:
- In the cost approach, land is always valued separately using:
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