To determine the estimated reproduction cost of a subject building, the appraiser takes the ____ and multiplies it by the cost per square foot of a recently constructed comparable structure.

The estimated reproduction cost of a subject building is determined by taking the square footage of the living area and multiplying it by the cost per square foot of a recently constructed comparable structure. This method focuses specifically on the living area, as it represents the space that directly contributes to the building's usability and value.

Using the square footage of the living area ensures that the calculation reflects only the parts of the building that serve a residential function, thereby providing a more accurate estimate of reproduction costs. The cost per square foot derived from comparables reflects current market conditions and construction costs, which are essential for a precise valuation.

In contrast, considering the cost of non-living areas or improvements does not directly correlate to the living area’s value contribution. Relying on regional multipliers may not capture the specific characteristics of the subject property accurately, leading to potential misestimations. By focusing specifically on the living area, the appraiser can ensure a more reliable and meaningful assessment of reproduction costs.