Valuation Methods in Real Estate Investment

In real estate investments, valuation is a critical aspect of determining the worth of a property. Various methods can be employed to arrive at an accurate assessment, each with its advantages and disadvantages. The three primary valuation methods are the Sales Comparison Approach, the Income Approach, and the Cost Approach.

Discuss each of these valuation methods, detailing how they work and in what scenarios they might be most appropriately applied. Additionally, provide an evaluation of the strengths and weaknesses of each method, and explain how they might yield different valuations for the same property.