What are the 3 real estate appraisal methods?

Answer 1

The three approaches are:

1. The cost approach--what would it cost to reconstruct the subject property in today's cost minus the depreciation for the aging of the subject property.
2. The income approach--what would the subject property produce as an income property if rented. This would be based on an income stream determining present value.
3. The market approach--this is most commonly used in residential real estate. It compares other similar homes which have recently sold to the subject property, making adjustments to arrive at a fair market value.