What scenario is the Trended Original Cost method best suited for?

The Trended Original Cost method is particularly well-suited for historical buildings with no current comparables because it utilizes the original costs of the property and adjusts those costs for inflation or other economic factors over time. This approach effectively captures the value of a property that has significantly appreciated or depreciated since its construction, providing a more accurate appraisal for unique or older structures that do not have sufficient nearby comparable properties to evaluate against.

In cases where historical buildings lack direct comparables, relying on the trended cost allows appraisers to base their valuation on the cost to reproduce the property, adjusted for current market conditions. This helps in establishing a fair market value reflective of the building's significance and historical context.

Other scenarios might not match as closely; for example, new constructions would typically benefit from current market data rather than relying on historical cost trends. Similarly, properties in active markets might utilize different valuation methods that are more reflective of current transactional data. Structures with many comparables would also lean towards sales comparison approaches rather than costs, which reinforces why this method is particular to unique historical buildings lacking comparable sales data.