What does the allocation method provide regarding market value?

The allocation method provides a broad indicator of market value because it is based on historical data and trends within a specific market segment. This method involves analyzing the sales of comparable properties and determining a value based on the distribution of property types and sizes. It gives appraisers a way to estimate value without delving deeply into the specifics of each property, thus offering a general overview rather than pinpoint precision.

By relying on comparative data, this method effectively reflects the overall market conditions and pricing strategies without getting bogged down in the finer details that might apply to individual properties. Though useful, it does not yield an exact value or precision compared to other appraisal methods that might take additional factors into consideration. Additionally, while the method can certainly be applied to any home, its broad approach makes it less suited for unique properties or older homes that may require more specialized valuation techniques.