When there is an active market for the type of property being appraised, we compare it to similar properties that were recently sold. The process can involve anything from a simple comparison of prices of similar properties adjusted for any significant physical and locational differences, to a complex analysis of the rate of return investors expect for properties with similar income-generating potential. If there are not enough recent sales from which to draw a conclusion, the appraisal would be based on an analysis of the current replacement cost, including typical overhead and profit, and any necessary adjustments for depreciation.