Appraisal Approach


Definition of "Appraisal approach"

Michael Severin
Michael Severin RE/MAX Results

Three basic methods for setting values on property: (1) The cost approach estimates the replacement value of real property. (2) The comparable sales approach compares properties with other similar properties, thereby estimating the market value. (3) The income approach compares the net income a property will return to an investor.

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