What are the three main approaches to property valuation?

The three main approaches to property valuation are indeed the sales comparison approach, cost approach, and income approach. Each of these methods provides a unique perspective for determining the value of a property.

The sales comparison approach involves analyzing recent sales of similar properties in the same area to determine a fair market value. This method is particularly effective in active real estate markets where comparable properties have recently sold.

The cost approach focuses on determining the value based on the cost to replace the property at current prices, subtracting any depreciation. This approach is useful for properties that do not have a significant amount of comparable sales or when the property is unique.

The income approach centers on valuing income-producing properties based on their ability to generate revenue. This method typically includes calculating the net operating income and applying a capitalization rate to determine value.

This combination of approaches allows appraisers to arrive at a well-rounded value for properties, making choice B the correct answer. The other options contain incorrect terminologies or combine methods that are less recognized in property valuation contexts, which detracts from their correctness.