When determining market value, which method may an appraiser utilize?

An appraiser can utilize various methods to determine market value, which includes the Comparative Market Analysis, Cost Approach, and Income Capitalization Approach. Each of these methods serves a specific purpose and is chosen based on the property type and the information available.

The Comparative Market Analysis involves examining similar properties recently sold in the area to gauge market trends and determine a property's value based on what buyers are currently willing to pay. This approach is particularly useful for residential properties.

The Cost Approach is driven by the premise that a property's value can be estimated based on the cost to replace or reproduce the structure, minus depreciation. This method is often employed for new constructions or special-use properties where comparable sales data may be scarce.

The Income Capitalization Approach focuses on the income the property generates, which is particularly relevant for investment properties. The valuation is based on the potential income stream and the capitalization rate applicable to the market.

By recognizing that all these methods can be applied in different scenarios, it's clear why the answer is that an appraiser may utilize all of the above approaches when determining market value. Each method contributes a unique perspective that can enhance the accuracy and reliability of the appraiser’s valuation.