Which valuation method is most reliable for assessing partial interest properties?

The sales comparison approach is particularly reliable for assessing partial interest properties because it involves comparing the subject property with similar properties that have recently sold in the market. This method is based on the principle of substitution, which posits that a rational buyer will not pay more for a property than the cost of acquiring an equally desirable substitute property.

When it comes to partial interest properties, having tangible examples of comparable sales allows appraisers to effectively gauge market perceptions and values of various property interests. This is essential because partial interests may reflect different configurations, rights, and restrictions that can significantly affect value. The sales comparison method provides a clear way to present these differences based on actual market transactions, therefore yielding a more accurate reflection of the value of the partial interest.

While the other valuation methods may have their own merits, they do not provide the same level of clarity and market-derived data as the sales comparison approach. For instance, the cost approach relies more on the estimated cost to replace or reproduce the property, which may not consider market fluctuations and the unique nuances of partial interest ownership. The income approach, on the other hand, focuses on the revenue-generating potential of the property, which may not apply effectively to every type of partial interest. Lastly, the market value approach