When utilizing the cost approach for appraisal, what method is Edwin likely to use to calculate his construction cost-new estimate?

In the cost approach to appraisal, determining the construction cost-new estimate involves assessing how much it would cost to either reproduce or replace the structure being appraised. Reproduction costs specifically refer to the expense of creating an identical replica of the building using the same materials and construction techniques. This method ensures the appraiser takes into account both the quality and characteristics of the subject property, providing an accurate and comprehensive assessment of value based on a complete duplication of the original structure.

Replacement costs, while also a relevant method, might consider modern materials and methods to achieve a similar utility rather than an exact replica. Thus, while both reproduction and replacement costs are acceptable methods within the cost approach, the option referring to reproduction costs directly aligns with the intention of calculating a cost-new estimate that reflects a like-for-like construction scenario.

Using accrued depreciation or solely professional judgment does not specifically address the calculation of construction costs, making them less suitable choices in this context.