The Three Valuation Approaches.

      The accepted system of estimating value concentrates on three main procedures. The three approaches have been designated as the cost approaches , market approach and income approach. The Valuers Association of Thailand

1. Market approach. Known also as the market data or sales comparison approach. Results in the market value estimate derived from the analysis of recent sales of properties similar to the property appraised.

2. Cost approach. An estimate of the land value, building cost, building depreciation. The sum of the estimate land and the depreciated building value produces a value that is termed the "Indicated" market value from the cost approach.

3. Income Approach. Takes the net annual income and capitalizes it at an appropriate capitalization rate. This results in the indicated market value from the income approach.