Michael Rikon
In a condemnation case, real estate is valued as if it is free and clear of all leases, mortgages or encumbrances. It is a fair market valuation. Matter of City of New York (Bronx River Expressway), 278 App. Div. 813 (1d Dept, 1951).
Appraisers estimate property value by utilizing three approaches to analyze real estate data. The three classic methods of valuing real property are: the market data or comparable sales approach; the income capitalization approach; and, the cost approach. Let’s examine each method separately.
