CAS Blog

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.