What method of valuation is used to insure the property described as costing $150,000 to rebuild but having an offer of only $80,000?

In this scenario, the appropriate method of valuation is market value. Market value refers to the amount for which a property would sell on the open market. In this case, the property has a potential offer of $80,000, which reflects what buyers in the market are willing to pay for it, regardless of the higher rebuilding cost of $150,000.

This option is significant because it emphasizes the difference between what it costs to rebuild a property and what it is worth in a competitive real estate market. The rebuilding cost might be higher due to various factors (like construction expenses) but the current market conditions dictate a lower buying price.

Other valuation methods, such as replacement cost, actual cash value, and intrinsic value, focus on different aspects — replacement cost considers only the current cost to rebuild the property without regard to market fluctuations, actual cash value factors in depreciation, and intrinsic value pertains more to the perceived value based on personal feelings or importance rather than market dynamics. In this case, the scenario aligns best with market value because it deals specifically with how much buyers value the property today.