Which approach to value involves methods like the square footage method and the unit in place method?

The cost approach to value is centered around estimating the value of a property based on the cost to replace or reproduce it, minus depreciation. This approach is particularly useful for properties that are not frequently sold, such as schools or churches, or for new constructions.

Methods such as the square footage method and the unit in place method fall under this approach. The square footage method calculates the overall value based on the total area of the property multiplied by the cost per square foot of similar properties in the market. The unit in place method assesses the value by determining the cost of individual components of a property (like electrical systems, plumbing, etc.) and adding them together to establish a total value.

In contrast, the sales comparison approach relies on comparing the property to similar properties that have recently sold to estimate value, while the income approach focuses on the potential income the property can generate. The market analysis approach typically involves broader evaluations of market conditions rather than specific valuation methods. Therefore, the cost approach is the most appropriate choice here due to its reliance on calculating value based on construction costs and related methods.