California Real Estate Practice Exam

In the determination for replacement costs of a new property, an appraiser would use all of the following methods, except:

1. Comparative square foot

2. Observed condition of the property

3. Quantity survey

4. Unit cost-in-place

The correct answer is: Comparative square foot

The method that typically would not be used in determining replacement costs is the comparative square foot method. This approach is more suited for estimating the value of properties based on recent sales of similar properties rather than directly assessing the costs associated with the construction or replacement of a specific property. The quantity survey method provides a detailed assessment of exact quantities and costs of materials and labor needed for construction, making it very thorough for determining replacement costs. The unit cost-in-place method focuses on the costs of constructing components of the property as they are installed, which is relevant for replacement calculations. The observed condition of the property allows appraisers to account for any wear and tear or unique aspects of a property that affect replacement costs. In contrast, the comparative square foot method is better suited for market analysis rather than for precise replacement cost evaluations, making it the outlier among the options presented.