Property Valuation
In the cost approach, replacement cost differs from reproduction cost because replacement cost is:
AAlways higher than reproduction cost
BThe cost to build an exact replica using identical materials
CThe cost to build a structure of equal utility using current materials and methods✓ Correct
DThe cost to replace land with similar land elsewhere
Explanation
Reproduction cost is the cost to build an exact replica of the structure using the same materials and methods. Replacement cost is the cost to build a structure of equal utility using current materials, design, and construction methods. Replacement cost is more commonly used in appraisal because it avoids attributing value to obsolete features.
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