Property Valuation
A Connecticut commercial property's lease rate is significantly above or below market. When appraising for market value, the appraiser would:
AUse only the actual contract rent
BUse market rent to reflect what the property would earn in the open market✓ Correct
CAverage the contract rent and market rent
DDisregard rent entirely and use the cost approach
Explanation
Market value is based on market rent, not contract rent. If a lease is above or below market, the appraiser uses market rent to estimate the income the property would generate in the open market.
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