How Real Property Is Valued. Having an understanding of appraisal concepts will help you understand how your property’s value will be determined. Appraisers find market value by analyzing real estate data utilizing three methods: the market data or comparable sales approach; the income capitalization approach; and the cost approach. The approach emphasized by the appraiser will depend on subjective factors such as the type of property and the reason to value it. No matter which approach is used, basic concepts include that worth may not correspond to what cost. Nor does fair market value necessarily mean assessed value in Arizona. Next in Part 2: The Cost Approach.