The document discusses three approaches to appraising property value: the direct sales comparison approach which estimates value in exchange, the income capitalization approach which estimates value in use by capitalizing future income, and the cost approach which estimates value based on the cost to create the property less depreciation plus land value. It notes that the most important approach depends on the type of property, with value in exchange used for homogeneous properties, value in use for income-generating properties, and cost to create for special properties.
The document discusses three approaches to appraising property value: the direct sales comparison approach which estimates value in exchange, the income capitalization approach which estimates value in use by capitalizing future income, and the cost approach which estimates value based on the cost to create the property less depreciation plus land value. It notes that the most important approach depends on the type of property, with value in exchange used for homogeneous properties, value in use for income-generating properties, and cost to create for special properties.
The document discusses three approaches to appraising property value: the direct sales comparison approach which estimates value in exchange, the income capitalization approach which estimates value in use by capitalizing future income, and the cost approach which estimates value based on the cost to create the property less depreciation plus land value. It notes that the most important approach depends on the type of property, with value in exchange used for homogeneous properties, value in use for income-generating properties, and cost to create for special properties.
The document discusses three approaches to appraising property value: the direct sales comparison approach which estimates value in exchange, the income capitalization approach which estimates value in use by capitalizing future income, and the cost approach which estimates value based on the cost to create the property less depreciation plus land value. It notes that the most important approach depends on the type of property, with value in exchange used for homogeneous properties, value in use for income-generating properties, and cost to create for special properties.