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Value Approaches
November 16th, 2018 1:37 PM

Three Approaches to Value

There are three ways to determine the value of anything, and each plays a part in property appraisal:

  • Sales Comparison Approach--based upon the value of what similar properties have sold for in the vicinity with appropriate adjustments to time, acreage, living area, amenities and so on.
  • Cost Approach--based upon the cost of replacing the property minus accrued depreciation.
  • Income Approach--based upon the income a property may generate.  May not be applicable to owner-occupied residential property.

 

 



Posted in:Appraisal
Posted by Jon Jensen on November 16th, 2018 1:37 PMPost a Comment

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