In the cost approach, reproduction cost is typically used for which type of property?

• A. Unique or historic properties where exact replica is desired.
• B. Modern, typical properties.
• C. Vacant land.
• D. Property with high external obsolescence.

Answer: (B)

Reproduction cost means the cost to build an exact duplicate of the subject property using current materials and methods. It is most appropriate for unique or historic properties where an exact replica matters to value, or where preservation or insurance requirements dictate a precise copy of the original design. For modern, typical properties, appraisers generally use replacement cost—the cost to construct a structure that provides the same utility and function today, but not an exact copy of the original. This reflects everyday market expectations for functionality and current construction practices, rather than a perfect replica. Factors like vacant land or external obsolescence influence depreciation or land value, not the decision to use reproduction versus replacement for valuing improvements.