Which method of measurement does an appraiser typically use to evaluate the components of building costs?

The replacement cost method is commonly employed by appraisers to evaluate the components of building costs because it focuses on determining how much it would cost to replace a structure with a similar one at current prices, using materials of similar quality. This method incorporates the cost of labor, materials, and any other relevant expenses to arrive at a comprehensive estimate.

The replacement cost approach is particularly useful for appraisers because it not only considers the physical attributes of the building but also evaluates depreciation, thereby giving a more accurate representation of its value and cost evaluation. This method allows appraisers to give a fair assessment of a property's worth in today's market based on the current replacement cost for similar buildings, making it a valuable tool in real estate appraisal.

In contrast, the square-foot method is less detailed and relies on generalized calculations based on a price per square foot, which may not account for specific cost variations in different building components or quality grades. The estimated cost method may imply approximation without precise cost breakdowns and calculations, while the actual cost method focuses on historical costs that might not reflect current market conditions.