What is the primary purpose of the cost approach in mass appraisal?

The primary purpose of the cost approach in mass appraisal is to calculate the cost of constructing improvements to the land. This method involves estimating the expenses associated with building a structure on a property, including materials, labor, and indirect costs, and then subtracting any depreciation from that amount. This approach is particularly effective for properties that are not often sold or have few comparables on the market, such as unique or specialized structures.

By determining the cost to create a replacement or reproduction of the property, assessors can provide an insightful estimate of the property's value, especially in instances where market data may not be readily available. This method aligns well with the needs of mass appraisal, which aims to assess properties consistently and fairly on a larger scale, serving public interests like property taxation.