What is the main advantage of using the Cost Approach method to appraise a unique property like a church?

The main advantage of using the Cost Approach method to appraise a unique property like a church lies in its consideration of construction costs. This approach allows appraisers to estimate the value of a property by calculating the current cost to build a replica of the structure, minus any depreciation. Since unique properties, such as churches, may not have an active market or comparable sales due to their specialized use, the Cost Approach provides a more reliable valuation by focusing on the actual costs incurred to construct the building.

This method captures the physical characteristics and the investment in the property itself, making it particularly suitable for structures that are not frequently bought or sold, where traditional market comparisons may not be available. Therefore, the emphasis on construction costs allows for a thorough and context-specific analysis that is particularly beneficial in valuing unique properties.