Question

Your home value is likely to be higher with all of the following except

A) being close to a school.
B) having a convenient location.
C) being in an area that has just been zoned for industrial use.
D) being in an area where a large retail business has just moved in.

Answer 1

The cost to create an exact duplicate of the building in the cost approach to valuation is known as the reproduction cost, encompassing all expenses of constructing a replica.

Step-by-step explanation:

In the cost approach to valuation, the cost to create an exact duplicate of the building is called its reproduction cost. This method of valuation is used in real estate appraisal and assumes the price one should pay for a property should not exceed what someone would have to spend to build an equivalent edifice. The reproduction cost covers all expenses related to constructing a replica of the building, which includes materials, labor, and an allocation for profit and overhead, but can also include costs related to land and site improvements.