Property Valuation
Reproduction cost in appraisal means:
AThe cost to construct a substitute building with the same utility using modern materials and techniques
BThe cost to build an exact replica of the existing building using the same materials and design✓ Correct
CThe cost of land only, excluding improvements
DThe historical cost of the building when originally constructed
Explanation
Reproduction cost is the cost to build an exact replica of the subject building using the same materials, design, and construction techniques as the original. Replacement cost (as opposed to reproduction) allows for modern substitutes with the same utility.
Related Iowa Property Valuation Questions
- The principle of substitution in Iowa appraisal states that:
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