Which of the following is NOT an appraisal approach?

• A. Cost approach
• B. Income capitalization approach
• C. Market Value Approach
• D. Sales Comparison Approach

Answer: (C)

Understanding appraisal methods is key. There are three standard methods used to value real estate: the cost approach, the income capitalization approach, and the sales comparison approach. The Market Value Approach isn’t a separate appraisal method; market value is the result you derive by applying these methods, especially the sales comparison approach. So, the option labeled as Market Value Approach does not represent a distinct appraisal method. The other options fit the recognized approaches: cost approach analyzes replacement cost minus depreciation; income capitalization converts projected income into value; and sales comparison uses prices of comparable recent sales to estimate value.