This method of valuation is used for unique or historic properties, as well as new construction. It is frequently used when comparables are unavailable, and when the subject property does not produce income. In order to reach an opinion of value, the appraiser estimates the current cost to build a new improvement with the same utility, then deducts accrued depreciation, before adding the value of the land. This method of valuation is called:

Questions for the California Real Estate Salesperson exam.