Property Valuation
In the cost approach, 'replacement cost new' differs from 'reproduction cost new' in that:
AThey are identical terms used interchangeably by Illinois appraisers
BReplacement cost estimates the cost to build a functionally equivalent structure using current materials and techniques; reproduction cost estimates the cost to build an exact replica✓ Correct
CReplacement cost is lower than reproduction cost for all properties
DReproduction cost is only used for historic properties in Illinois
Explanation
Reproduction cost new is the estimated cost to build an exact duplicate of the subject structure using the same materials, methods, and design—which may include obsolete or inefficient features. Replacement cost new estimates the cost to build a functionally equivalent structure using current materials and construction methods.
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