California Real Estate Practice Exam

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Appraisers use which of the following methods for estimating costs?

  1. Comparative square foot, unit in place

  2. Comparative square or cubic foot, unit in place, quantity survey

  3. Replacement costs, resulting from capitalization calculations

  4. Residual income, resulting from capitalization calculations

The correct answer is: Comparative square foot, unit in place

Appraisers use the Comparative Square Foot method for estimating costs. This method involves comparing the cost per square foot of similar properties that have recently sold or been appraised. By analyzing the cost per square foot of comparable properties, appraisers can estimate the cost of the subject property based on its size. This method is commonly used in real estate appraisals to determine the value of a property based on its size and quality compared to similar properties in the area. Options B, C, and D are incorrect because they do not specifically refer to the Comparative Square Foot method, which is the most commonly used method for estimating costs in real estate appraisals.

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