Property Valuation
The income capitalization approach to appraisal is MOST appropriate for:
ASingle-family owner-occupied homes
BIncome-producing investment properties✓ Correct
CNew residential subdivisions
DVacant land parcels
Explanation
The income capitalization approach converts anticipated income into a value estimate. It is most appropriate for income-producing properties like apartment buildings, office complexes, and retail centers.
Related Alabama Property Valuation Questions
- A property purchased for $280,000 with improvements costing $45,000 was sold 2 years later for $370,000. What is the total gain?
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- Which of the following properties would most likely be appraised using the cost approach as the primary method?
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