What type of method uses the cost of recently constructed similar properties?

The appropriate method that utilizes the cost of recently constructed similar properties is the Comparative Unit Method. This method involves analyzing the costs associated with constructing comparable properties to derive an estimate of value. By evaluating the costs of similar properties in a given area, an evaluator can estimate the value of a subject property based on these benchmarks.

This approach is particularly useful in residential and commercial real estate contexts where similar properties have been built recently, providing a reliable reference for current construction costs, local market conditions, and other influencing factors. It is useful for establishing a baseline that reflects the local market's reaction to construction expenses, materials, and labor, which ultimately can affect property value.

The other methods listed do not specifically focus on the costs of similar properties in this way. The Depreciation Method focuses on the reduction in value of a property over time, the Cost Approach considers the total cost of construction without directly comparing to similar properties, and the Linear Measurement Method relates to measuring properties rather than analyzing costs. The focus of the Comparative Unit Method on recently constructed similar properties is what differentiates it as the correct choice in this scenario.