Property Valuation
The 'income approach' to value is MOST appropriate for which type of Alaska property?
AOwner-occupied residential homes
BVacant land in a rural area
CIncome-producing commercial or multi-family rental properties✓ Correct
DNew subdivision lots
Explanation
The income approach estimates value based on the income stream a property produces. It is most appropriate for properties that are purchased for their income potential, such as apartment buildings, office buildings, retail centers, and other commercial investment properties.
Related Alaska Property Valuation Questions
- An Alaska appraiser determines that comparable sales need a 'market conditions adjustment' of +2% per year due to price appreciation. For a sale that closed 18 months ago at $400,000, the time-adjusted price is approximately:
- An Alaska appraiser who makes a 'negative 5% condition adjustment' to a comparable means:
- Under the income approach, 'potential gross income' (PGI) is the total rental income the property would generate if:
- An Alaska appraiser values a property 'as of' a specific date. This 'effective date' is significant because:
- An Alaska appraiser using the sales comparison approach gives the most weight to which comparable?
- In Alaska, the 'capitalization rate' is affected primarily by:
- Under Alaska appraisal practice, a 'desk review' appraisal involves:
- In Alaska, which of the following properties would MOST likely receive the HIGHEST capitalization rate from an appraiser?
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