What are the three primary approaches to value in real property appraisal?

The three primary approaches to value in real property appraisal are the cost approach, sales comparison approach, and income approach.

The cost approach assesses value based on the cost to replace or reproduce a property, minus depreciation. It is often used for unique properties or when there aren't enough comparable sales available.

The sales comparison approach relies on recent sales data of similar properties to estimate value, making it particularly effective in stable markets where comparable sales information is readily available. This method hinges on the principle of substitution, which suggests that a buyer would not pay more for a property than they would for a similar one.

The income approach is utilized primarily for investment properties and is based on the income generation potential of a property. Appraisers calculate the present value of expected future benefits of ownership, considering factors like rental income and operating expenses.

Options that mention approaches not generally recognized in real property appraisal, such as "sales depreciation approach" or "income evaluation approach," do not accurately reflect the established methodologies used by appraisers. Each of these approaches serves a specific purpose and is applied based on the context and characteristics of the property in question.