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:

1. Estimate the total income generated by the property from all sources, taking into account the comparison of the market with the actual revenue of the assessed property.
2. Subtract unused debt capacity or bad debts based on facts and market trends.
3. Deducting other expenses such as operating expenses, taxes, insurance, management, maintenance charges will give you net income.
4. To calculate the rate of return on the investment from the property, bring net income into the formula 'V = I / R' where 'V' is the property value 'I' is the net income, 'R' is the rate of return.

This approach of revenue analysis aids to value a property. Direct Capitalization and Discounted Cash Flow are two sub-methods based on future profits forecasts. If the property's income changes little or none at all, the Direct Capitalization method is employed. However, if the property's income is expected to fluctuate in the future owing to market conditions, the Discounted Cash Flow method is used instead.The Direct Capitalization method estimates the property's single-year net income. This strategy should only be employed when the market is normal or in the market in which demand, supply, and revenue rarely vary much because the earnings for this year are assumed to be typical for all future years. It is best suited for income-generating properties with a smaller footprint, such as residential condominiums, commercial buildings or office suites.The Cash Flow Analysis method estimates the property's future income based on the property's life expectancy and discounted to present value. The core is that the estimated future income will fluctuate according to market circumstances, inflation, and interest rates. As a result, the assessor must fully understand the asset's nature by precisely estimating future revenue. Furthermore, appropriate knowledge of financial concepts such as Net Present Value (NPV), Internal Rate of Return (IRR), Discount Rate, and others is required.

Hypothetical Development Method or Residual Method

This method serves to assess undeveloped land or projects that have not yet been completed. According to current market conditions, the potential of the land or project is assessed by assuming that the development is the most useful and best (Highest and Best Use). Assumptions must be consistent with laws, finances, markets. The physical condition of the property, and all development costs, such as building costs and land value, must be reduced. Alternatively, the worth of a project that has already been completed can be calculated using the formula'Project Value / Construction costs / Other costs = Other costs = Land value (cost of land that can be developed)'.

Methods of assessment by statistical modelling (Computer-Assisted Mass Approach)

CAMA is a branch of comparative market assessment using MRA (Multiple Regression Analysis) statistical modelling to help, widely used to assess hundreds of thousands of land plots at once, for example, expropriating or land arranging.