Property Valuation
What is a square-foot cost in Nevada construction and how is it used in appraisal?
AThe sales price per square foot of land
BThe cost to construct one square foot of building, used in the cost approach to estimate the replacement/reproduction cost of improvements✓ Correct
CThe monthly rent per square foot in commercial leases
DThe appraiser's fee per square foot of property
Explanation
In the cost approach, the square-foot cost method estimates the replacement or reproduction cost of improvements by multiplying the gross living area by the cost per square foot from cost manuals (Marshall & Swift, Craftsman) adjusted for Nevada regional factors and current construction costs.
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