Property valuation is an art wherein there are so many factors involved in the estimation that appraisers are merely giving an opinion of the property value. Economic bases of value are: substitute cost obtained; change in development and other trends changes; profit competition; improvements; conformity with other activities in the area; supply and demand; and highest and best land use. Here are three approaches most appraiser’s follow to come up with a value conclusion: 1) Market Data (comparable sales); (2) Cost; and (3) Income.
http://www.nuwireinvestor.com/articles/real-estate-valuation-methods-61603.aspx
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