Which method cannot be used to determine market conditions in the sales comparison approach?

The concept of determining market conditions in the sales comparison approach involves analyzing comparable sales to deduce the value of a property. Market analysis is essential in this context as it evaluates supply, demand, and overall trends in the marketplace.

Using the cost approach, which involves analyzing costs to construct a similar property and subtracting depreciation, can provide some context about market conditions, but it’s not the primary method used within the sales comparison approach. The depreciated cost is primarily a valuation technique rather than a direct method for assessing market conditions.

The sales comparison approach itself is inherently about understanding market conditions through the examination of comparable properties that have sold, making it a suitable means of determining market conditions.

The correct answer highlights that the depreciated cost method does not provide a direct assessment of market conditions relevant to the sales comparison approach. Instead, it focuses on the cost to replace or reproduce a property minus depreciation, which does not reflect how similar properties are valued in the current market.