Property Valuation
In South Carolina, what is 'reproduction cost' versus 'replacement cost' in appraisal?
AThey are identical
BReproduction cost duplicates the original exactly; replacement cost uses modern materials and techniques to provide equivalent utility✓ Correct
CReplacement cost is always lower
DReproduction cost is used for vacant land; replacement cost for improvements
Explanation
Reproduction cost is the cost to build an exact duplicate of the subject improvement using the same materials and methods. Replacement cost is the cost to construct an improvement of equal utility using current materials and methods. Replacement cost is typically lower and more commonly used.
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