Property Valuation
The income approach to value is most commonly used for:
ASingle-family owner-occupied residences
BVacant land in rural areas
CIncome-producing investment properties such as apartment buildings✓ Correct
DSpecial-use properties like churches
Explanation
The income approach estimates value based on the income a property generates. It is most appropriate for income-producing properties (offices, apartments, retail) where investors make decisions based on expected returns.
Related California Property Valuation Questions
- What is 'economic obsolescence' in property appraisal?
- Which of the following is an example of external (economic) obsolescence?
- In the cost approach, 'reproduction cost' differs from 'replacement cost' because:
- Which factor would most likely increase the capitalization rate an investor requires for an income property?
- A 2,000 sq ft home in a neighborhood has a value of $400 per square foot based on comparable sales. Using the sales comparison approach, what is the indicated value?
- Under the principle of conformity, property values are maximized when:
- A Comparative Market Analysis (CMA) prepared by a real estate agent is:
- The cost approach to appraisal is MOST useful for which type of property?
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →