Property Valuation
In Michigan, the 'square foot method' in cost appraisal estimates replacement cost by:
ADividing the number of rooms by total square footage
BMultiplying the building's total square footage by the cost per square foot to build a similar structure✓ Correct
CDividing the total cost of materials by the number of floors
DMultiplying the lot size by a neighborhood adjustment factor
Explanation
The square foot (or unit comparison) method estimates the cost to reproduce a building by multiplying the total heated/livable square footage by a current cost per square foot for comparable new construction.
Related Michigan Property Valuation Questions
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