Why might an appraiser choose to use only one approach to valuation during an appraisal?

An appraiser may choose to use only one approach to valuation when the other methods are not applicable or relevant to the specific characteristics of the subject property. For instance, in instances where the property type or its unique features do not align well with the income approach or the cost approach, the sales comparison approach might be the only method that can accurately reflect the property’s value based on comparable sales data. This scenario is common with specialized or unique properties where limited data is available for the other approaches, making the selected method essential for a credible valuation.

While time constraints could affect the decision to focus on one method, the relevance of the approaches directly influences the choice as well. Simplification of the valuation process, although a potential benefit, is secondary to ensuring the chosen method provides the most accurate and defensible value estimate based on the property in question. Therefore, the choice is grounded in the specific circumstances surrounding the property being appraised.