Which approaches are used to estimate property value according to Texas regulations?

The correct answer, which identifies the approaches used to estimate property value according to Texas regulations, accurately includes the sales comparison, income capitalization, and cost approaches.

The sales comparison approach relies on comparing a property to similar properties that have recently sold in the same area, providing a market-driven perspective on value. This method is widely accepted in real estate and aligns well with how properties are evaluated under Texas tax regulations.

The income capitalization approach is particularly relevant for income-producing properties. This method estimates value based on the income that a property generates, projecting future cash flows and applying a capitalization rate to determine present value. It is particularly useful for commercial properties or rental units.

Finally, the cost approach involves estimating the value of a property based on the cost of constructing a similar property minus depreciation. This approach is useful for new constructions or unique properties that may not have comparable sales data.

These three methods are established and recognized by Texas property tax laws, making them the appropriate choices for estimating property value within the state.