Which method is used to estimate the cost to reproduce or replace a building, adjusted for depreciation?

The cost depreciation approach is specifically designed to estimate the cost involved in reproducing or replacing a building while also accounting for depreciation. This method focuses on determining the current cost of constructing a similar property and then adjusts that cost based on the depreciation that has occurred. Depreciation can stem from various factors, including physical deterioration, functional obsolescence, and economic obsolescence.

This method is particularly useful when dealing with properties that have limited comparable sales data, as it allows appraisers to estimate value based on the cost to replace the structure, ensuring that the finished valuation reflects the property's current condition.

In contrast, the income approach is primarily concerned with the profitability of a property by analyzing income-generating potential, while the sales comparison approach focuses on comparing the property to recently sold comparable properties to derive value. The market analysis approach encompasses a broader examination of market conditions but does not specifically address the reproduction or replacement costs with depreciation considered. Thus, the cost depreciation approach is the most appropriate for this scenario.