Which appraisal approach is most commonly used in mass appraisal situations?

The Cost Approach is particularly well-suited for mass appraisal situations due to its focus on estimating the value of a property based on the cost to replace or reproduce it, minus any depreciation. This approach simplifies valuation by using standardized data and formulaic assessments that can be applied across numerous properties, which is essential when valuing a large number of properties simultaneously.

In mass appraisal contexts, it is often impractical to conduct detailed individual appraisals, particularly for properties like residential homes or commercial buildings that have similar characteristics. By leveraging the Cost Approach, appraisers can efficiently estimate values based on replacement costs, allowing for a standardized process that maintains consistency across multiple appraisals.

This method is often complemented by local construction cost data, which helps ensure that the appraisals reflect current market conditions. While other approaches can also be useful in specific scenarios, the Cost Approach provides a systematic framework that can be applied broadly, making it the preferred choice for mass appraisal tasks.