- TRADITIONAL APPROACHES TO VALUE
Basically, there are three approaches to property valuation used by appraisers. Each gives a separate indication of value, yet the approaches are all interrelated and all use market comparison techniques. All three approaches are considered in each complete assignment. However, all three are not always employed, depending upon the property type and the process and report type agreed to by the client and the appraiser.
The approaches to value are: Sales Comparison (or Market Data) Approach; Cost Approach; and Income Capitalization Approach.