Property Valuation
What does 'reproduction cost new' mean in the cost approach?
AThe cost to replace a structure with a modern equivalent
BThe cost to build an exact replica of the structure using the same materials and methods at today's prices✓ Correct
CThe current market value of the improvements
DThe depreciated value of the structure at the time of appraisal
Explanation
Reproduction cost new is the estimated cost to build an exact replica of the subject structure using the same design, materials, quality, and workmanship as the original, but at current labor and material prices. This is used when the appraiser wants to value unique historical features that differ from modern construction.
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