Which approach would be best for appraising a unique property with few comparables?

The Cost Approach is particularly well-suited for appraising a unique property with few comparables because it focuses on estimating the value based on the cost of replacing or reproducing the property, minus any depreciation. This method allows appraisers to consider the specific features and characteristics of the unique property that may not have equivalent market comparables.

In cases where there are few or no similar properties to compare with, relying on sales data can be challenging. The Cost Approach provides a viable alternative by determining the value based on the land's value plus the current cost of constructing the building or improvement, adjusted for depreciation due to age, condition, and functional obsolescence. This approach is especially useful for properties that have special features or are one-of-a-kind, as traditional comparison methods may not accurately capture their value.

This approach often becomes indispensable when dealing with properties like custom-built homes, unique commercial buildings, or special-use properties such as museums or recreation centers that lack a direct market equivalent. In these cases, the Cost Approach allows appraisers to derive a coherent value based on the expenditure required to create a similar structure rather than relying solely on market data that may not reflect the true worth of the property.