Which approach focuses primarily on the replacement cost of properties for assessment purposes?

The Cost Approach is centered on estimating the value of a property by determining the cost to replace or reproduce it, minus any depreciation. This method is particularly useful for valuing new constructions or specialized properties where market data may be limited. By calculating the cost of replicating the property and accounting for factors like physical deterioration and functional obsolescence, assessors can derive a value based on the inherent worth of the physical structure, land improvements, and site development. This approach is especially relevant for properties that are not frequently bought or sold, where comparable sales data may not be available for the Sales Comparison Approach, making it a valuable tool in assessment administration.