Which appraisal method assesses the entire property as a whole?

The property residual method is designed to assess the value of an entire property rather than focusing on individual components or segments. This valuation method is particularly useful for properties that generate income, as it evaluates the total property value by analyzing its potential revenue-generating capability.

In this approach, appraisers estimate the net income that a property will generate and then subtract the costs associated with its operation and management. The remaining value gives an indication of the property's worth as a complete entity, which is essential when assessing investment properties or commercial real estate.

Other methods, while useful in their contexts, do not take into account the whole property in the same way. The land residual method focuses more specifically on the value of the land alone, while the development method is concerned with evaluating various stages or aspects of property development. The distribution method typically involves breaking down property values into specific components, rather than assessing the property as a whole. Hence, the property residual method stands out as the method that accurately assesses the entire property collectively.