The cost approach is considered the most accurate valuation method for which types of properties?

The cost approach is particularly well-suited for unique properties or special-use buildings, such as churches or other structures that do not frequently trade in the market. This approach involves estimating the cost to replace or reproduce the property, subtracting any depreciation, and then adding the land value.

For unique buildings, market comparisons may be difficult due to a lack of similar properties, and income generation may not be the primary focus. Consequently, the cost approach allows appraisers to determine value based on the current cost of materials and labor required to rebuild, as well as the specific characteristics of the unique property. This method provides a more accurate reflection of value, especially in scenarios where comparable sales and income potential may not apply or be lacking.