ATLANTA—Commercial real estate appraisals are typically significantly different and more complex than single-family residential appraisals. So says Paulk Turner, director of J.H. Berry & Gilbert's appraisal and valuation services division.

In part one of this exclusive interview, Turner educated us on the ins and outs of the Cost Approach to appraisals. The Cost Approach is based on the principle of substitution, that an informed and rational investor would pay no more for a property than the cost to construct a similar and competitive property. In part two, he discusses the Sales Comparison Approach.

“Similar to the Cost Approach, the Sales Comparison Approach is based on the premise that an informed and rational buyer would pay no more for a specific property than the cost of obtaining a property with the same quality, utility, and perceived benefits of ownership, and is based largely on the principle of substitution,” Turner tells GlobeSt.com. Here's the actual definition, according to The Appraisal of Real Estate – 14^th Edition: