What assessment method is primarily used for residential properties?

The Residential Market Approach is primarily used for assessing residential properties because it relies on the principle of substitution, which posits that a buyer will not pay more for a property than the cost of acquiring a similarly desirable substitute property. This assessment method evaluates the market value of a residential property by comparing it to recently sold properties that are similar in size, location, and characteristics, often referred to as "comps."

This approach takes into account current market conditions, location nuances, and the specific features of the subject property in relation to comparable sales. It is widely favored for residential properties due to the volume of data available from recent sales, making it an effective and accurate way to determine market value reflective of what buyers in the area are willing to pay.

The other methods, while useful in varying contexts, do not primarily focus on residential properties. The Cost Approach is generally more applicable to unique properties or when evaluating costs associated with new construction. The Income Approach is predominantly used for income-generating properties, like commercial real estate, while a Comparative Market Analysis is more of a tool used by real estate agents and is not formally a property assessment method.