What type of assessment approach does not factor in the income generated by a property?

The sales comparison approach is a method that evaluates a property's value based on recent sales of similar properties in the area. This approach focuses on the market activity and comparable transactions rather than the income a property might produce. It considers the sale prices of comparable properties that have recently sold to derive an estimate of value for the subject property.

In contrast, the income approach specifically looks at the revenue that a property generates, factoring in rental income and operating expenses to assess value based on its income potential. The cost approach takes into account the cost to recreate the property along with depreciation, while the market value approach typically aligns with the sales comparison but may aggregate various market factors into its assessment.

By honing in on comparative sales rather than income data, the sales comparison approach distinctly separates itself from others that might incorporate income into their evaluation processes. This characteristic makes it an effective tool for assessing properties that may not produce income, such as residential homes or newly developed properties.