Ken B
Elite Member
- Joined
- Feb 18, 2004
- Professional Status
- Certified General Appraiser
- State
- Florida
So I am preparing to take my CG exam and I am using an exam prep product which is either only slightly better than nothing or, if actually indicative of the difficulty of the current exam, explains a lot about why it seems there are a lot of "um, duh" questions asked around here.
Anyways, one of the questions regards reproduction cost new and replacement cost new and the "correct" answer states that they are the same when the improvements are new.
I disagree. It would be true if it were assumed that the new improvement did not contain functional deficiencies, defects, or superadequacies.
While it may not be sensical to do so, a property could be built new with the textbook example of a 3' thick concrete foundation when all that would be necessary is a single-course CMU foundation. Reproduction cost new would consider the cost of rebuilding with the thicker foundation while replacement cost new would consider the thinner foundation.
At least that is the way I learned how it works many years ago. Am I out of date or is the exam prep answer wrong? Considering other defects in the software, I am leaning towards the given answer being incorrect.
Anyways, one of the questions regards reproduction cost new and replacement cost new and the "correct" answer states that they are the same when the improvements are new.
I disagree. It would be true if it were assumed that the new improvement did not contain functional deficiencies, defects, or superadequacies.
While it may not be sensical to do so, a property could be built new with the textbook example of a 3' thick concrete foundation when all that would be necessary is a single-course CMU foundation. Reproduction cost new would consider the cost of rebuilding with the thicker foundation while replacement cost new would consider the thinner foundation.
At least that is the way I learned how it works many years ago. Am I out of date or is the exam prep answer wrong? Considering other defects in the software, I am leaning towards the given answer being incorrect.