Property Valuation
When estimating replacement cost for an older Massachusetts Victorian home, an appraiser using the 'comparative unit method' (square foot method) would:
ACalculate the cost to restore every original Victorian detail exactly
BUse current cost per square foot for similar new construction, then apply depreciation✓ Correct
CUse only the land value and ignore improvements
DAverage the tax assessed value over 5 years
Explanation
The comparative unit (square foot) method estimates the cost of constructing a new building with similar utility at current prices per square foot. The appraiser then deducts accrued depreciation (physical, functional, and external) to arrive at the value contribution of the improvements.
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