Question

The three main methods of appraising real estate are

Select one:

a. the capitalization approach, the tax assessment approach, and the sales comparison approach

b. the cost approach, the income approach, and the sales comparison approach

c. the insured value approach, the cost approach, and the land residual approach

d. any of the methods listed above may be used by an appraiser to value real estate

Answer 1

Correct Answer is option B
Real estate methods -

• Cost Approach = Cost of land + Cost of construction - Depreciation -Obselence
• Income Approach = Value of property based on the DFC to bbe used for commercial income producing properties. IV0 = NOI / cap rate
• Sales comparision approach = We identify similar properties based on location, age,size, type of contruction etc. With in adjust with market value for different with the subject property.

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