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The term ‘appraisal trinity’ is used to refer to the three most common methods of appraising real property. The three methods that come under appraisal trinity are:
1. Market Approach.
2. Cost Approach.
3. Income Approach.
The following is an example of a case law on appraisal trinity:
In condemnation actions, California courts have long recognized what has been referred to as the "appraisal trinity." This term encompasses three methods or approaches used by appraisers to determine the fair market value of real estate: (1) the current cost of reproducing (or replacing) the property less depreciation from all sources; (2) the "market data" value as indicated by recent sale of comparable properties; and (3) the "income approach," or the value of which the property's net earning power will support based upon the capitalization of net income. These three approaches have been codified in Cal. Evid. Code §§ 815-820. A qualified appraiser in an eminent domain proceeding may use one or more of these valuation techniques to ascertain the fair market value of the condemned property. [People ex rel. Dept. of Water Resources v. Andresen, 193 Cal. App. 3d 1144 (Cal. Ct. App. 1987)].