How do you estimate market value?

When there is an active market for the type of property being appraised, we compare it to similar properties that were recently sold. The process can involve anything from a simple comparison of prices of similar properties adjusted for any significant physical and locational differences, to a complex analysis of the rate of return investors expect for properties with similar income-generating potential. If there are not enough recent sales from which to draw a conclusion, the appraisal would be based on an analysis of the current replacement cost, including typical overhead and profit, and any necessary adjustments for depreciation.