Appraisers generally use ______ approaches to determining value.

Appraisers typically use three main approaches to determine the value of a property: the Sales Comparison Approach, the Cost Approach, and the Income Approach. Each of these methods is suited for different types of properties and market conditions, allowing appraisers to provide a more accurate and reliable estimate of value.

The Sales Comparison Approach involves comparing the subject property to similar properties that have recently sold in the same area. This method is particularly effective in active real estate markets where adequate sales data is available, making it insightful for residential properties.

The Cost Approach estimates the value of a property based on the cost to replace or reproduce it, minus any depreciation. This approach is often used for new constructions and unique properties where sales data may be limited.

The Income Approach is primarily used for investment properties and estimates value based on the income the property generates. By evaluating potential income and applying capitalization rates, appraisers can derive a value reflective of its earning potential.

By employing all three approaches, appraisers gain a comprehensive understanding of a property's value, ensuring that the final appraisal reflects market conditions and property characteristics accurately.