Property Valuation
What is 'land residual technique' in Delaware appraisal?
AA technique for valuing residual (remaining) land after a partial take
BA method for estimating land value when building value is known: subtract income attributable to the building from total NOI to find income attributable to land, then capitalize it✓ Correct
CA technique for valuing residential lots remaining in a subdivision
DA residual value analysis used in cost approach appraisals
Explanation
The land residual technique estimates land value when building value is known: (1) calculate income attributable to the building (Building Value × Building Cap Rate), (2) subtract from total NOI to get land income, (3) capitalize land income at the land cap rate.
Related Delaware Property Valuation Questions
- What is 'functional utility' and how does it affect Delaware property value?
- What is the principle of substitution in real estate appraisal?
- The principle of conformity states that property values are maximized when:
- The income capitalization approach to value is most appropriate for:
- Entrepreneurial profit is included in the cost approach because:
- The principle of substitution states that:
- In an appraisal, what does reconciliation mean?
- Using the income approach, if a property has a NOI of $45,000 and the cap rate is 7.5%, what is the estimated value?
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