Property determination

they use sales comparison approach meaning comparing the price of the property with others properties in the same area

Normally appraisers use 3 techniques to determine the fair market value of a property. They are market data, replacement cost, and income analysis. The market-data is secured by comparing the subject property with similar properties that have recently been sold in the same area. In the replacement cost valuation, one estimates the replacement cost of the property. In income analysis, the appraisal ties the value of an investment property to the income that it's likely to produce.