Property Valuation
The income capitalization approach is MOST appropriate for valuing:
AA single-family owner-occupied residence
BA vacant lot
CAn income-producing apartment building✓ Correct
DA recently built church
Explanation
The income capitalization approach is most appropriate for income-producing properties such as apartment buildings, office buildings, and retail centers. It estimates value based on the property's ability to generate income.
Related Idaho Property Valuation Questions
- Functional obsolescence is a loss in value caused by:
- In the income capitalization approach, if a property's net operating income (NOI) is $60,000 and the capitalization rate is 6%, what is the property's estimated value?
- The remaining economic life of a building is used in the cost approach to:
- What is the 'principle of substitution' in real estate appraisal?
- The 'cost approach' is most reliable for appraising which type of property?
- The principle of 'conformity' in appraisal holds that:
- Which type of property would most commonly be appraised using the income approach?
- In Idaho, an appraiser completing a 1004 (URAR) appraisal form is appraising which type of property?
Practice More Idaho Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Idaho Quiz →