Reproduction cost is defined as the cost of
building the improvements exactly as they would appear if they were new on the effective date of appraisal
Replacement cost is defined as the cost of
building the improvements with a structure of like utility but new as of the effective date of valuation
Indirect construction costs do not include
Builder's overhead
Site improvements may be valued at
Depreciated reproduction cost
Replacement cost is best used
To eliminate some functional obsolescence from the cost approach
The cost approach is based on the
Theory of substitution
The cost approach is
Most applicable when the subject improvements represent the highest and best use of the site as though vacant and are relatively new
The most detailed method of estimating the cost new of a structure is the
Quantity survey method
The unit-in-place cost-estimating method is
based on the cost of each component of the building, including all labor and materials
A cost-estimating method in which appraisers estimate the current cost of construction-based on the amount paid for the building when it was built is called
cost index trending
when appraising an improved property with substantial functional losses, you should
accurately estimate the cost and deal with the obsolescence in the depreciation estimate
Chapter 29
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An incurable functional problem is best defined as
an item that will not return as much in value as it costs to fix
If a window has an effective age of 10 years and a remaining economic life of 25, the % of depreciation is
30%
A property has an overhead garage door that is 13 years old and costs 1900 to replace. B/c the inclement weather comes out of the northwest. These doors typically last 15 years if they face west and 25 years if they face east. This door faces east. What i
912
Effective age is
total economic life minus remaining economic life
An item if depreciation is curable if
the cost to cure is less than the expected increase in value