What is a key feature of the Trended Original Cost method?

The key feature of the Trended Original Cost method is that it uses historical data when no reliable current figures are available. This method involves taking the original cost of a property or structure and adjusting it for inflation to arrive at a trended value. This approach can be particularly useful when current market data is limited, ensuring that appraisers can still arrive at a value that reflects historical investment while considering the changes in the economy over time. By leveraging historical costs, this method maintains relevance even in fluctuating market conditions, where comparable sales may not be accessible or applicable.

The focus on historical data allows appraisers to provide a grounded valuation based on actual expenditures rather than speculative current market values. This method is particularly applicable in situations where property has been owned for a considerable duration and the appraiser wishes to establish value based on the original investment rather than solely on current market trends.