Cost Approach: This approach estimates the cost to replaces the property as of the effective date of the appraisal, minus any physical or functional obsolescence and physical depreciation.

Sales Comparison Approach: This is the most widely used method in the appraisal process. In this process, value is estimated by comparing the subject property to recent sales of similar properties within close proximity to the subject. The basic concept of this approach is that value is directly related to sales prices of similar properties in the area.

Income Approach: This approach is the most complex of the appraisal process and is primarily used in determining value of income producing properties. This approach provides an estimate of value of what an investor would pay for a property based on income that the property produces.