California Real Estate Salesperson Exam Practice – Question 10

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Question

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In comparing the cost of reproduction of two buildings of the same square footage, a two-story house usually:

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Selections

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• A. Costs more than a one-story house

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• B. Costs less than a one-story house

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• C. Costs the same as a one-story house

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• D. Can’t be compared with a one-story house

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Answer: B

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5 Keys Summary

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1. A two-story house generally costs less to reproduce than a one-story house with the same total square footage.

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2. This lower cost is due to the structure being more cost-effective to build on a per-square-foot basis.

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3. The efficiency is gained by stacking the living space vertically, maximizing use “under the same roof and over the exact same foundation”.

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4. Since the foundation and roof are major construction expenses, a two-story house requires less foundation footprint and smaller roof surface area, lowering overall reproduction costs.

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5. Reproduction cost is an estimate to rebuild an exact replica, which demonstrates that a comparable one-story building is inherently more expensive due to its larger required roof and foundation.

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