Property Valuation
In Alaska, the 'income approach' is least appropriate for which type of property?
AA 20-unit apartment complex
BAn owner-occupied single-family residence✓ Correct
CA triple-net leased retail strip center
DA small mixed-use building with retail and apartments
Explanation
The income approach is least appropriate for owner-occupied single-family residences because they are not typically purchased for their income-generating potential. Most homebuyers are not investors analyzing rental income — they use the sales comparison approach instead.
Related Alaska Property Valuation Questions
- Which principle of value explains why a home across from a noisy industrial facility will sell for less than an identical home in a quiet residential area?
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- An Alaska property's reproduction cost is:
- An Alaska appraiser calculates a capitalization rate of 8% for an income property with an NOI of $40,000. Using direct capitalization, the indicated property value is:
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