Which appraisal approach is specifically used for properties that do not generate significant income?

Prepare for the Florida Realtor Sales Associate Exam with interactive quizzes, detailed questions, and insightful explanations. Boost your confidence and ace your test!

The cost-depreciation approach is the correct answer because it focuses on determining the value of a property based on the cost to replace it, minus any depreciation for physical, functional, or economic obsolescence. This approach is particularly useful for properties that do not generate significant income, such as unique properties or those that are not primarily commercial or investment-oriented. It allows appraisers to consider the value of the land and the costs associated with constructing a similar property, providing a clear picture of the asset's worth without relying on income generation.

The sales comparison approach typically involves comparing the subject property with similar properties that have recently sold, which can be effective for residential properties but may not be as useful for unique or non-income-producing properties. The income approach focuses on the income generated by the property, making it unsuitable for those that do not have a significant income stream. Lastly, market analysis is a broader concept that encompasses various factors influencing property values and isn't a defined appraisal approach in itself. Thus, the cost-depreciation approach is specifically tailored for properties where income generation is not the primary focus.

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