The approach most viable for purely residential properties to determine Open Market Value is using the Sales Comparison Method, (also known as the Market Data Approach), which requires a Valuer to take his cue from the prices being obtained in the open market for properties which can be regarded as reasonable substitutes for the one being valued. The logic of this Sales Comparison Method is based on the Principle of Substitution. By this is meant a buyer will not be prepared to pay more for the property to be valued (the subject property) than it would cost him to buy a comparable property of more or less similar utility or productivity.

The Income Capitalisation Approach is one of the three traditional approaches a Valuer may use. It is not an independent system of valuation unrelated to the other approaches. The limits of prices, rents, and rates tend to be set by the prevailing prices, rent and rates for equally desirable substitutes. The income capitalisation approach is based on the principle that the value of a property is indicated by its net return, or what is known as the "present worth of future benefits." The future benefits of income-producing properties are the net income estimated by a forecast of income and expense along with the anticipated proceeds from a future sale. These benefits can be converted into an indication of market value through a capitalisation process and discounted cash flow analysis. The Capitalisation approach establishes the net normalised annual income of the property, assuming the property is fully let at market related rentals, and market escalations, with a provision made for vacancies (if required). Market related operating expenses are then deducted, resulting in a net annual income which is then capitalised at a market related capitalisation rate.

Depreciated replacement cost is an application of the cost approach used in assessing the value of specialized assets for different purposes, where direct market evidence is limited or unavailable.The current cost of reproduction or replacement of an asset less deduction for physical deterioration and all relevant forms of obsolescence and buyers resistance. The value of the land, which will be determined by using the direct comparable methodology, will be added to the depreciated value of the improvements to obtain the Depreciated Value of the property.

The profits method of property valuation is typically applied to commercial property valuations where the major value component is driven by the profitability of the businesses that occupy the buildings and not simply the land or buildings themselves. Situations where the profits method of valuation would be appropriate include hotels, guest houses, pubs and cinemas. When comparable market information to reliably determine the value of a commercial property is unavailable, is limited, or is unsuitable in some way, then valuing the property using the profits method can be used to overcome these limitations.

The Residual method is a way of valuing a property that has development potential. Whether a particular property has good potential to be developed will depend upon the increase in property value exceeding the cost of building work. The project can be studied to establish the overall financial viability of it before committing to a detailed financial analysis of costs and expected benefits.