The cost approach is a method used in real estate appraisal to determine the value of a property. It calculates the cost to replace or reproduce the property, minus any depreciation. This approach is particularly useful for new constructions or unique properties where comparable sales data may be limited. In the cost approach, appraisers consider the current costs of materials and labor, along with the value of the land. This method helps ensure that the property’s value reflects its actual construction costs, making it a reliable option for assessing properties like schools, hospitals, and other specialized buildings.