Which method is not typically used for appraising commercial property?

Study for the California Real Estate Broker Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Prepare efficiently and effectively for your licensing exam!

The comparative market analysis (CMA) is primarily used for evaluating residential properties, rather than commercial properties. This method involves assessing recent sales of similar properties in the same area to determine a property's market value, making it more applicable in a residential context where property characteristics such as size, style, and condition can easily be compared.

In contrast, the cost approach, sales comparison approach, and income approach are all methodologies routinely employed in the appraisal of commercial properties.

The cost approach considers what it would cost to replace or reproduce a property and often includes depreciation calculations, which can be important for commercial property appraisals.

The sales comparison approach, while more common in residential evaluations, is still utilized for commercial properties when there are sufficient comparable sales available.

The income approach is particularly vital for commercial appraisals since it focuses on the potential income the property can generate, which is a crucial factor for investors and lenders in assessing value. Therefore, CMA is not typically used for appraising commercial property due to its residential focus.

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