The three valuation approaches that can be applied to the appraisal problem are the Sales Comparison Approach, Income Capitalization Approach and the Cost Approach. Proper analysis and application of these methods requires knowledge of relevant market and neighborhood trends. A highest and best use analysis is also crucial to proper valuation. The appraisal fee is based on the scope required to report a credible value conclusion. In many cases it is not necessary to develop all three approaches to provide a credible opinion of value and an in depth Highest and Best Use analysis is not necessary.