Which of the following are the three approaches to determining real estate value?

The three approaches to determining real estate value are indeed the sales comparison approach, the income approach, and the cost approach. Each of these methods offers a different perspective on how to analyze and value a property.

The sales comparison approach evaluates value based on the sale prices of similar properties in the vicinity, providing an effective way to determine a competitive market price by analyzing what buyers have recently paid for comparable homes.

The income approach is primarily used for investment properties, focusing on the income that a property generates. It assesses value based on the present value of expected future income, which is particularly relevant for commercial real estate where rental income is a critical factor.

The cost approach calculates value based on the cost to replace or reproduce the property, minus depreciation. This method is useful when valuing new construction or special-use properties where comparison sales might be limited.

Understanding these three approaches is essential for real estate professionals as they provide a comprehensive toolkit for determining property values across different scenarios.