Cost Approach

The most important is the value of the property = the cost of replacing a comparable property. This method estimates the cost of constructing a new replacement property at its current price, then subtract depreciation over its useful life and add the market value of land to get the value of that property. This method is for properties built with a specific purpose, such as a factory. In the case of a housing estate, a market comparison approach would be more appropriate. In situations where property prices are falling while the cost of building materials is higher, sometimes the calculated cost may be more than the market value. Therefore, the assessment in this way might change from reality.

Market Approach

This method is the best since it is essentially an analysis of market trading value. It is only possible if the market trades sufficiently to be compared directly with the appraised property. Essentially the value of our property = the price of the comparable property that others can sell. Also known as market data, considering how it looks and differs from the appraised property, there must be a sufficient number. The analysis must consider various factors that affect the value of the assessed assets with the market data, such as location, town plan, land plot size, size of the usable area of the building, building quality, etc. Therefore, analyze the value of the assets to be assessed using various appropriate techniques such as Sale Adjustment-Grid Method, Weighted Quality Score (WQS).

Analysis from Income (Income Approach)

This method analyses the value from the income of the property. It is suitable for properties that generate income from the property itself (Income Producing Property). The principle is that today's value = the sum of net income to be received in the future until the end of life. The property is valuable because it can generate income. Higher-income properties have a higher value (Location - better quality). The steps are summarized as follows: