Which approach is NOT part of the 5 rules of value?

The approach that is not part of the 5 rules of value is that sales price reflects personal sentiments.

In real estate valuation, the 5 rules of value typically encompass objective factors that influence the market value of a property, such as economic trends, location, physical characteristics, and market forces. These rules focus on concrete aspects like how supply and demand, comparable sales, and economic indicators affect a property’s value.

Sales price reflecting personal sentiments suggests that individual emotional factors play a significant role in determining value, which is outside the scope of the fundamental principles used by appraisers and real estate professionals. While sellers and buyers may have personal feelings that influence their willingness to buy or sell, these sentiments do not typically factor into established valuation methodologies in a systematic manner. Instead, market value and market price are derived from measurable and observable data.

In contrast, market forces affecting market value, the difference between market value and market price, and subjective views of value for each property, all pertain to recognized economic principles that are integral to understanding how value is determined and adjusted in the real estate market.