Property Valuation
What is the difference between 'reproduction cost' and 'replacement cost' in Kansas appraisal?
AThey are identical terms
BReproduction cost estimates cost to build an exact replica; replacement cost estimates cost to build a functionally equivalent structure using current materials and methods✓ Correct
CReplacement cost is used only for commercial properties
DReproduction cost applies only to historical buildings
Explanation
Reproduction cost is the cost to build an exact duplicate of the existing structure. Replacement cost is the cost to build a functionally equivalent structure using current materials and methods. Appraisers typically use replacement cost for the cost approach.
Related Kansas Property Valuation Questions
- In Kansas, what is the 'income capitalization approach' formula?
- The sales comparison approach to value is most appropriate for:
- A Kansas appraiser using the income approach determines a property has an EGI of $85,000 and operating expenses of $34,000. The cap rate is 7%. What is the estimated value?
- What is the gross rent multiplier (GRM) method used for in Kansas?
- The principle of progression in Kansas real estate states that:
- When using the cost approach, functional obsolescence refers to:
- In Kansas, when an appraiser reports the 'as-improved value,' they are estimating the value of:
- In a Kansas appraisal, 'arm's length transaction' means:
Practice More Kansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Kansas Quiz →