Property Valuation
The reproduction cost in the cost approach refers to:
AThe cost to build a functionally equivalent structure using modern materials
BThe cost to construct an exact replica of the subject improvement using the same materials and methods✓ Correct
CThe depreciated value of the improvements
DThe cost to purchase a comparable property
Explanation
Reproduction cost is the cost to build an exact duplicate of the improvements using the same materials, quality, and workmanship as the original construction. Replacement cost uses modern materials with the same utility.
Related Georgia Property Valuation Questions
- The 'extra' value created by a corner lot compared to interior lots is called:
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