Which of the following represents the cost approach to appraisal?

The cost approach to appraisal is based on the idea that a property's value can be determined by calculating the cost to replace or reproduce it, minus any depreciation, and then adding the value of the land. This method is particularly useful for new constructions or unique properties where comparable sales data may not be available.

In the formula presented, replacement cost considers the current cost of building the structure at today's prices. Depreciation accounts for the loss in value due to physical wear and tear, functional obsolescence, or external factors. Finally, land value reflects the worth of the land on which the property is situated, which is crucial because a property's total value includes not just the structure but also its location.

The other options represent different valuation mechanisms. The market value of comparable properties relies on assessing the sale price of similar properties in the area, which is more aligned with the sales comparison approach. The current sale price of the home reflects the actual transaction value and can be influenced by market conditions, not just intrinsic property values. Lastly, the income generated by the property pertains to the income approach to appraisal, which evaluates the potential return on investment based on rental income rather than considering construction and land values. Thus, the cost approach is specifically embodied in the first