13-26.Accepted appraisal standards require that the appraiser consider three approaches to the determination of value:

Question

Quizplus · Accepted Answer

The accepted appraisal standards require the appraiser to consider three approaches to the determination of value, which are cost, market, and income. These three approaches are widely recognized as the most reliable and objective methods to determine the value of a property. The cost approach determines the value by estimating the replacement cost of the property minus any depreciation. The market approach determines the value by comparing the property to similar properties that have been sold recently in the same market. The income approach determines the value by estimating the potential income that the property could generate and applying a capitalization rate. Therefore, the best choice would be A) cost, market, and income.

13-26Accepted Appraisal Standards Require That the Appraiser Consider Three Approaches