In the cost approach to value, the appraiser primarily uses which of the following?

In the cost approach to value, the appraiser primarily focuses on the estimated replacement cost of the building. This method involves calculating what it would cost to replace the structure with a similar one, taking into consideration current construction costs, materials, and labor. The appraiser determines the value by estimating this cost and then deducting any depreciation, which accounts for wear and tear, functional obsolescence, or economic obsolescence.

The emphasis is on replacing the building as it is, which makes the estimated replacement cost the cornerstone of this approach. By assessing the cost to rebuild, the appraiser can provide an accurate value for properties that may not have significant comparable sales or when the property is unique.

The other choices focus on different types of valuation methods. The owner's original cost relates to what was paid to acquire the property, which may not reflect current market conditions. Sales prices of similar buildings pertain more to the sales comparison approach, where market dynamics play a significant role. The assessed value represents a property's worth as determined for tax purposes and may not accurately reflect its current market value. Thus, the estimated replacement cost is the key component of the cost approach in real estate appraisal.