To determine the estimated reproduction cost of a subject building using the index method, what do appraisers use as the denominator to calculate the index factor?

To determine the estimated reproduction cost of a subject building using the index method, appraisers use the cost index at the time of construction as the denominator to calculate the index factor. The cost index reflects the changes in construction costs over time, allowing appraisers to adjust the original construction cost to present-day values. By using this index, appraisers can accurately estimate what it would cost to reproduce the building today based on historical construction costs and economic changes.

This approach ensures that the assessment accounts for inflation and shifting material or labor costs, offering a more precise approximation of current reproduction costs. The other options do not serve as a baseline for adjusting construction costs in this methodology. For instance, estimating accrued depreciation relates to the value lost over time due to wear and tear, not the initial costs of construction. Estimated site value pertains to the land alone and does not factor into reproduction costs directly. The listing price is a reflection of market dynamics and does not provide the historical data needed for accurate cost indexing.