Which of the following is NOT one of the three main approaches to property valuation?

In property valuation, professionals primarily utilize three main approaches: the Sales Comparison Approach, the Cost Approach, and the Income Approach. Each of these methods serves different types of properties and circumstances.

The Sales Comparison Approach involves evaluating comparable properties that have recently sold in order to estimate the value of the subject property. This is particularly effective in residential real estate markets where similar properties can be easily identified.

The Cost Approach assesses the value of a property by calculating the cost to replace or reproduce the property minus any depreciation. This method is often used for new constructions or special-use properties where comparable sales may not be readily available.

The Income Approach focuses on the income-generating potential of a property, using rental income and operating expenses to determine value. It is commonly applied to commercial properties where cash flow is a critical factor.

The Market Demand Approach is not recognized as one of the standard methods for property valuation. While market demand undeniably influences property prices and can be a factor in how valuations change over time, it is not a valuation method in itself. Understanding this distinction helps clarify why this approach does not fall within the established frameworks that appraisers and real estate professionals rely upon to determine property values.