For the purpose of specifying market conditions that prevent marking-to-market, it is necessary to specify inactive markets.

The replacement cost method is useful when it is difficult to find comparables (inactive market, special purpose or non-standard building, new construction).

It is mostly used when it is difficult to find comparables (inactive market, unique property, new construction).

While this model has led to massive profits for some luckier market players, this practice is unsustainable and only leads to a dead market.