What does the comparative unit method primarily focus on for estimating costs?

The comparative unit method focuses on the unit costs of similar properties to estimate costs effectively. This approach involves analyzing the costs associated with properties that are comparable in size, type, location, and other relevant characteristics. By assessing what similar properties have sold for or what it cost to build them, appraisers can derive a cost estimate for the subject property. This method allows for more accurate estimations based on real-market data rather than relying solely on theoretical or broad average figures.

While past sales data and market trends can inform overall market conditions, they do not provide the specific unit cost information needed to apply the comparative unit method effectively. Average construction costs serve as general guidelines but may not reflect the nuances of various property types or specific local conditions that the comparative unit method seeks to capture. Thus, the emphasis on unit costs of similar properties is what makes this method particularly focused on deriving accurate cost estimates in property assessments.