Which of the following is NOT one of the approaches to valuing when appraising?

The Investment Approach is not typically recognized as a standard method for property appraisal. The primary approaches commonly used in real estate valuation include the Direct Comparison Approach, Cost Approach, and Income Method.

The Direct Comparison Approach involves evaluating similar properties that have recently sold to determine a property’s market value based on the prices of comparable properties.

The Cost Approach estimates the value of the property based on the cost to replace or reproduce the structure, minus any depreciation, and is particularly useful for new constructions or unique properties.

The Income Method is often utilized for investment properties, where the value is derived from the income the property generates, capitalizing expected future income into a current value.

Since the Investment Approach is not standard terminology used to describe valuation methods in appraisal contexts – unlike the other three, which are well-established – this option is identified as not being one of the recognized approaches.