In property valuation, which approach gives a comprehensive assessment based on land and building costs?

The cost approach is the correct answer because it focuses on determining the value of a property based on the costs associated with its land and improvements, or buildings. This method assesses how much it would take to replace the structure with a similar one, including construction costs, plus the value of the land it occupies. The premise is that a buyer would not pay more for a property than the cost of building it new, minus any depreciation.

This approach is particularly useful for properties that are not frequently bought and sold, or for those that have unique structures not easily compared to others. It centralizes the emphasis on tangible factors – land and construction costs – making it a thorough method for valuation.

Other options serve different purposes. The income approach focuses on the potential revenue generation of the property, which is more relevant for commercial real estate. The replacement cost approach is similar but may not consider depreciation as explicitly as the cost approach does. The comparative market analysis approach utilizes recent sales data to determine value, making it less comprehensive in terms of assessing cost. Each of these approaches has its context where it excels, but for a comprehensive assessment relying on land and building costs, the cost approach is paramount.