Property Valuation
The income approach to value is most appropriate for valuing which type of Connecticut property?
AA single-family owner-occupied home
BA vacant residential lot
CAn apartment building or commercial investment property✓ Correct
DA historic landmark property
Explanation
The income approach is used to value income-producing properties by capitalizing their net operating income. It is most applicable to apartment buildings, commercial properties, and other investment real estate.
Related Connecticut Property Valuation Questions
- An appraiser's final value conclusion is $485,000 for a Connecticut single-family home. The sales comparison approach indicated $490,000, the cost approach indicated $470,000, and the income approach was not applicable. The appraiser placed most weight on the sales comparison approach. This process is called:
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