Arizona Real Estate License Practice Exam 2025 – All-in-One Resource to Pass with Confidence!

The correct answer relates to the comparative costing method, which involves determining the cost of construction on a per square foot basis. In this case, the appraiser has estimated the replacement cost at $72 per square foot for a property measuring 1,775 square feet. By using the cost per square foot, the appraiser can quickly assess the total replacement cost—multiplying $72 by the total square footage to arrive at a comprehensive figure.

Comparative costing is often favored in real estate appraisal for its simplicity and effectiveness in providing immediate insights into the value of a property compared to similar structures in the area. This method allows appraisers to utilize commonly accepted metrics to streamline their analyses, making it easier to communicate values to clients and stakeholders.

Other methods, like the quantity survey and unit in place approaches, are typically more detailed and do not rely solely on a straightforward per-square-foot calculation. The economic measure is generally not focused on direct replacement costs but rather on broader economic factors influencing real estate value. This reinforces the utility of the comparative method for straightforward property valuation assessments.