Property Valuation
In Oklahoma, when an appraiser calculates the replacement cost of a building, they estimate:
AThe cost to rebuild the exact structure using original materials and methods
BThe cost to build a building of equivalent utility using current materials and construction methods at today's prices✓ Correct
CThe original construction cost adjusted for inflation
DThe assessed value multiplied by the millage rate
Explanation
Replacement cost is the cost to build a building with equivalent utility using modern materials, design, and construction methods at current prices. This differs from reproduction cost, which uses exact same materials and methods as the original.
Related Oklahoma Property Valuation Questions
- An appraiser determines a subject property's value using the gross rent multiplier (GRM). The property rents for $1,800/month and comparable properties sell for 120 times monthly rent. The estimated value is:
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