Comparison Approach to value makes use of other "bench mark" properties of similar size, quality and location that have recently sold. A comparison is made to the subject property and monetary adjustments are made to reflect differences in the properties.  The comparison approach is by far the most relied upon approach.

Cost Approach to value is what it would cost to replace or reproduce the improvements as of the date of the appraisal, less the physical depreciation, functional obsolescence and or economic obsolescence plus the land value. 

Income Approach to value is of primary importance in ascertaining the value of income producing properties. This approach provides an objective estimate of what a prudent investor would pay based upon the net income the property produces.