What is NOT a type of cost basis in applying the cost approach?

The cost approach in property valuation involves determining the value of a property based on the costs associated with replacing or reproducing it, which are categorized into specific types of cost basis.

In this context, historical, replacement, and reproduction costs are recognized methods used to approach valuation. Historical cost refers to the original cost paid for the property adjusted for inflation or depreciation. Replacement cost is defined as the amount it would take to replace the property with a similar one of equal utility, while reproduction cost is the cost of creating an exact replica of the property using the same materials and construction standards.

Market cost, however, is not a recognized type of cost basis under the cost approach as it pertains more to the actual market conditions and pricing of similar properties rather than a calculative approach to estimating value based solely on costs. Thus, it stands apart from the other types that align directly with the intrinsic costs of construction or replacement.