There are mainly 3 methods to evaluate your property.

1. Comparable sales approach
2. Income approach
3. Cost approach

Comparable sales approach identifies previous similar sales and determine the valuation of the property based on that sales. It is useful for general and more common properties.

Income approach converts future potential income that can be earned from a place and use that for the valuation of the property. It is basically used for commercial properties and those properties which have income generating capacity.

Cost approach assumes that when a buyer is buying a land it is also buying a property and will invest in it. So we take into account the construction cost too. This type of valuation method is used as a last resort when we don’t have anything to compare it too.

A quarry- income approach as a quarry has a income potential. Plus using comparative approach is irrelevant here as a quarry’s value is determined by what’s inside it. Using cost approach is useless as no construction is being done which should be rewarded.

A private hospital – income approach, hospitals have great income potential and generally there are not many hospitals. Therefore there is less scope for comparable approach and in between the income and cost method, income method is given preference.

A tea factory- cost approach. As in case of tea factory, the building Is more valuable than the land itself. There is a heavy cost involved in setting up the factory. Therefore construction cost must be given importance.

A mbo cinema- comparative sales approach as cinema halls are many in one place and there value can be compared to others to determine the value of the property. If a comparative property is not available then we can also use income method.

A theme park- cost approach combined with income approach. Theme park requires heavy investment in terms of construction but it also has great income potential. So both the method must be combined to get the accurate results.