Which of the following is NOT a component of the cost approach to appraisal?

The cost approach to appraisal is a method that estimates the value of a property by summing the land value and the current costs of constructing the building, which includes reproduction or replacement costs, while also accounting for depreciation.

Land value is a crucial component because it represents the value of the site on which the property sits, separate from any structures. Reproduction cost refers to the cost of building an exact replica of the property, whereas replacement cost considers the cost of constructing a building with similar utility but not necessarily the same materials or methods. Physical depreciation accounts for the wear and tear on the building over time, which affects its overall value.

Market conditions, however, although essential in other appraisal approaches, such as the sales comparison approach, are not a fundamental part of the cost approach. This approach focuses more on the intrinsic costs associated with the property rather than external market dynamics. Therefore, this makes the correct answer that market conditions is not a component of the cost approach to appraisal.