Which approach is not commonly used for residential properties?

The market prediction approach is not a commonly utilized method for appraising residential properties. The other approaches—cost, sales comparison, and income—are well-established and widely used in the appraisal process.

The cost approach involves estimating the cost to replace or reproduce the property, adjusted for depreciation, making it useful for determining values of newer homes or properties with unique characteristics where comparable sales data may be insufficient.

The sales comparison approach, often preferred for residential properties, assesses value based on the sale prices of similar properties that have recently sold in the same area, providing a direct reflection of market trends and buyer behavior.

The income approach is typically applied to investment properties or rental units, focusing on the income-generating potential of a property rather than just its physical characteristics or proximity to other properties.

The market prediction approach, while it may refer to forecasting future market trends or property appreciation, lacks the concrete evaluative basis and structured methodology that the other approaches offer, making it less applicable in typical residential property appraisals.