Which factor is NOT typically considered in the income approach to appraisal?

In the income approach to appraisal, the primary focus is on a property’s ability to generate income. This method relies heavily on quantifiable factors that directly affect the revenue potential of the property.

Potential rental income is crucial because it represents the primary source of revenue for investment properties. Appraisers will assess what similar properties are leasing for in the market to project the income that the appraised property could expect to generate.

Operating expenses are also essential to this approach as they impact the net income. Understanding costs such as maintenance, property management, and taxes allows the appraiser to calculate the net operating income, which is a key value figure in determining the property's worth.

Location of the property is a significant factor since it influences both the potential rental income and the demand for the property. Properties in desirable locations typically command higher rents and present better investment opportunities.

Market trends over the last decade, while providing context for broader economic conditions influencing real estate values, are less directly related to the income produced by the property itself in a given timeframe. Therefore, such long-term trends are generally not included in the calculations of the income approach, making this factor not typically considered in determining a property’s appraised value using the income approach.