Which approaches are used to estimate the value of a property?

The cost approach, sales comparison approach, and income approach are the primary methodologies used for property valuation because they encompass the fundamental strategies employed by assessors and appraisers to determine a property's worth.

The cost approach is based on the principle of substitution, which posits that a buyer will not pay more for a property than it would cost to create an equivalent one. This is particularly relevant for new constructions or specialized properties.

The sales comparison approach analyzes similar properties that have recently sold in the same geographic area to estimate value. By comparing these properties, assessors can determine a fair market value based on real market activity.

The income approach is primarily used for investment properties and is predicated on the income-generating potential of a property. This approach calculates the value based on the present value of expected future cash flows, accounting for factors such as rent and operating expenses.

The other options presented focus on related concepts, such as analyzing market conditions or various property attributes, but they do not specifically represent standardized methods for directly estimating property value.