Residential Valuation Approaches: Sales, Cost and Income

Sales comparison, cost and income are valuation approaches. Their relevance depends on the property, evidence and assignment; they are not interchangeable shortcuts.

Sales comparison needs supported differences

The appraiser analyzes relevant transactions and differences in rights, terms, time, location and property characteristics. A nearby sale is not automatically comparable. Neither rapid completion nor simply averaging sale prices establishes a reliable conclusion.

The cost approach includes land

The cost approach considers land value and the cost of improvements with applicable depreciation. Omitting land misstates the method. Construction expense alone is not market value; depreciation and market relevance still need analysis.

Income analysis depends on the market

Rental income, expenses and market expectations may be relevant to an income-producing residence. The assignment determines the appropriate analysis and available evidence. Owner occupancy alone does not create a universal prohibition, and no single formula fits every property.

Confirm the residential assignment

Alpha’s routine residential service area is King, Snohomish and Skagit Counties. The property, intended use, effective date and users guide the scope. Commercial properties, personal possessions and business valuations are not included by a broad home-appraisal description.

Use the report within its stated limits

Read the property description, analysis, assumptions and effective date. A value opinion does not promise a sale, settlement, assessment reduction or lender acceptance. If the purpose changes, ask whether new work is needed rather than automatically reusing the original report.

What should accompany a quote request?

Send the property address, purpose, requested effective date, intended users, deadline and access contact. Describe the residence type, relevant records and requested deliverable. Mention acreage, accessory units, multiple parcels or unusual features so scope, fee and availability can be confirmed.

Official reference: Property or assignment reference.

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Call 425-753-1971 or email dustin.labrasseur@gmail.com.

Revised October 8, 2026.