Which of the following is NOT one of the three methods of property valuation?

The correct identification of the method that is not one of the established approaches to property valuation highlights the understanding of the fundamental valuation methods in real estate. In property valuation, the three main approaches used are the cost approach, income approach, and direct comparison approach.

The cost approach involves estimating the value of a property by calculating the cost to replace or reproduce the improvements, minus depreciation. The income approach is based on the income-generating potential of a property, using the net operating income and capitalization rates to determine value. The direct comparison approach, often called the sales comparison approach, involves comparing the property to similar properties that have recently sold, adjusting for differences to find a reasonable market value.

The comparative data approach is not recognized as a standardized method on its own in property valuation. While it may imply the use of market data to make comparative analyses, this is essentially what the direct comparison approach encompasses. Thus, knowing the distinct methods involved in property valuation helps clarify why one option is not part of the standard vocabulary in professional valuation practice. Recognizing the established methods ensures accurate application in real estate assessments and evaluations.