Property Valuation
What is the 'band of investment' technique in Delaware appraisal?
AA method for valuing property near bands (limits) of different zoning
BA technique for estimating an overall capitalization rate using a weighted average of mortgage and equity rates✓ Correct
CA financial instrument combining mortgage and equity investments
DA method for determining the range of market value
Explanation
The band of investment technique calculates an overall capitalization rate as a weighted average of: (Mortgage Weight × Mortgage Constant) + (Equity Weight × Equity Yield Rate). It reflects that both the mortgage lender and equity investor require returns appropriate to their risk.
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