Property Valuation
The income approach to value is most commonly used to appraise:
ASingle-family homes
BVacant land
CIncome-producing properties✓ Correct
DHistoric properties
Explanation
The income approach converts the property's income stream into a value estimate and is most appropriate for income-producing properties such as apartment buildings and commercial properties.
Related Alabama Property Valuation Questions
- Functional obsolescence in property valuation refers to:
- The principle of substitution states that a buyer will pay no more for a property than:
- Which type of depreciation is caused by factors outside the property, such as a nearby industrial facility?
- The principle of 'conformity' states that:
- The principle of 'regression' in real estate value states that:
- In Alabama, which approach to value is most appropriate for a single-family home in a residential neighborhood?
- In the cost approach, economic life refers to:
- An appraiser determines a property's value by the cost to replace it, minus depreciation, plus land value. This is the:
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