Property Valuation
In Hawaii, which type of property would an appraiser most likely use the 'land residual technique' for?
AA. Single-family homes in established neighborhoods
BB. Vacant commercial land where income from hypothetical improvements is used to derive land value✓ Correct
CC. Condominium units in high-rise buildings
DD. Agricultural land with active crop production
Explanation
The land residual technique estimates land value by projecting income from hypothetical improvements, subtracting the return on the building value, and capitalizing the remaining (residual) income attributable to the land.
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