Comparable Sales Method (Market Approach): This method involves comparing the subject property to similar properties (comparables) that have recently sold in the same or similar area. The prices of these comparable properties are adjusted to account for differences in size, location, condition, and other factors, providing an estimate of the subject property’s market value.
Income Approach: The income approach is commonly used for valuing income-producing properties such as rental properties, commercial buildings, or investment properties. It involves estimating the property’s value based on its income-generating potential, typically by capitalizing the property’s net operating income (NOI) or using discounted cash flow (DCF) analysis.
Cost Approach: The cost approach estimates the value of a property by considering the cost of reproducing or replacing it with a similar property, adjusted for depreciation. This method is often used for valuing new or unique properties where comparable sales data may be limited. It involves estimating the cost of land, construction, and improvements, minus depreciation.
Residual Method: The residual method is commonly used in real estate development to determine the value of land based on the projected income from the developed property. It involves estimating the development costs, including construction and other expenses, and subtracting these costs from the projected future income to arrive at the residual land value.
Appraisal: Property appraisers use a combination of these methods, along with their expertise and judgment, to determine the most accurate valuation of a property. The chosen method or combination of methods depends on factors such as the type of property, its location, purpose of the valuation, and availability of data.

Each property valuation method has its strengths and limitations, and the choice of method depends on factors such as the type of property, availability of data, and the purpose of the valuation. It’s essential to consult with a qualified appraiser or real estate professional to determine the most appropriate valuation method for a particular property.