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Appraisers
estimate value of a property by the following recognized
approaches.
Sales Comparison Approach: Compares similar, recently sold
properties (homes, farms, machinery, jewelry) to the property.
Income Approach: Estimates what a prudent investor would pay for
the property base on the income the property produces.
Cost Approach: Estimates the cost to replace or reproduce the
property being appraised.
Through consideration of results of the analysis conducted, an
appraiser then develops a final estimate or opinion of a
property value.
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