Which approach to value does not rely on comparable sales data?

The cost approach to value is distinctly characterized by its method of assessing the value of a property without depending on comparable sales data. Instead of looking at what similar properties have sold for, this approach focuses on determining what it would cost to replace or reproduce the property, factoring in depreciation to find the current value.

This method is particularly useful for valuing unique properties, new constructions, or properties that do not frequently change hands, where comparative sales data might be scarce or less relevant. For example, if a unique or specialized property is being appraised, the cost approach provides a way to estimate value based on the cost of land and the construction of the building, thus bypassing the need for analysis based on the sales of similar properties.

In contrast, the sales comparison approach and market approach rely heavily on analyzing recent sales of comparable properties to determine value, while the income approach focuses on the earning potential of the property through rental or operational income.