Describe the "cost approach" used by assessors.

The cost approach used by assessors is based on estimating the value of a property by determining the cost to replace or reproduce the improvements on the property, then subtracting any accrued depreciation. This method is particularly useful for valuing unique properties where there may not be a significant number of comparable sales available, such as specialized buildings or new constructions.

In the cost approach, assessors first estimate the current cost of replacing the property improvements, which includes the materials and labor required to construct a similar property. Then, they account for depreciation, which reflects the reduction in value due to factors like physical wear and tear, functional obsolescence, or economic obsolescence. The final value estimate is achieved by subtracting this depreciation from the total replacement cost, ultimately providing a clear picture of the property's current value based on its replacement cost and condition.

This approach is distinct from the other methodologies mentioned. Projected future earnings relate to an income approach, market comparison involves analyzing the sale of similar properties, and focusing solely on land value ignores the improvements on the property, which are crucial to determining its overall market value.