Which property valuation approach is least likely to be used in the Building Residual Technique?

The Built-in Value Approach is the least likely to be used in the Building Residual Technique because this technique primarily focuses on determining the value of a property based on its income-generating potential and costs associated with development or construction.

In real estate, the Building Residual Technique is often linked with the Income Approach, which involves estimating the present value of future income streams generated by a property. It assesses the property as an investment and considers factors such as rental income and operating expenses, making it quite suitable for evaluating properties that produce income.

The Cost Approach and Sales Comparison Approach, while they may have their advantages in other contexts, do not align as closely with the conceptual framework of the Building Residual Technique. The Cost Approach focuses on the value derived from the cost to reproduce or replace a property, without directly accounting for the income potential. On the other hand, the Sales Comparison Approach analyzes similar properties that have sold recently, which does not align with the income focus of the Building Residual Technique.

In summary, the Built-in Value Approach is the least applicable in this case, as it does not fit into the framework of evaluating property based on income potential and associated costs, which are central to the Building Residual Technique.