what is a cost approach?

Question

i got an appraisal and it says "cost approach"

Answer 1

There are three methods to appraising a property, the cost approach, the income approach, and sales comps. Cost approach basically means that you figure out how much it would cost to build a similar building. Income approach is for commercial properties, and it values a property based on how much income it can generate. Sales comps value a property by comparing it to what similar properties have sold for.

Answer 2

Cost approach is a method of determining the value of a property by adding the value of the land plus the depreciated value of improvements.