Definitions for "Appraisal Methods"
There are 3 appraisal methods used on residential property: The cost approach which determines the cost to build a new structure The replacement approach which determines the cost to replace the existing structure The market value approach which uses the sales price of comparable properties
Generally three methods are employed to estimate the value of real estate: Cost Approach, Income Approach and Market Value (Comparables) Approach.
The approaches used in the appraisal of real property. (See cost approach, income capitalization, approach, sales comparison approach. )