Property Valuation
When does the income approach provide the MOST reliable value indication?
AFor owner-occupied single-family homes
BFor income-producing properties (apartments, office buildings, retail) with stable income histories✓ Correct
CFor vacant land being held for development
DFor properties selling in foreclosure
Explanation
The income approach is most reliable and appropriate for income-producing properties where investors are making purchase decisions based on cash flow and return on investment. It converts anticipated income into a value estimate, reflecting how investors actually think about these properties.
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