Which approach is tailored for new, nearly new, or unique properties?

The cost approach is typically the most suitable method for valuing new, nearly new, or unique properties. This approach focuses on estimating the cost to replace or reproduce a property, taking into account any depreciation that may have occurred. When dealing with new or unique properties, there may not be enough comparable sales data available to use other methods effectively, such as the income approach or the comparative sales approach.

By assessing the costs involved in constructing the building and adapting this to current market conditions, property managers and appraisers can determine the value accurately. The cost approach is particularly valuable when a property is distinctive or has features that are not found in existing local properties, making it difficult to gauge value through market comparisons. Thus, this method allows for a precise calculation reflecting the property's worth based solely on its construction costs and any adjustments for depreciation.