Property Valuation
The income approach to value is most appropriate for:
ASingle-family owner-occupied homes
BIncome-producing investment properties✓ Correct
CVacant agricultural land
DSpecial purpose properties like churches
Explanation
The income approach is primarily used for income-producing properties where the value is derived from the property's ability to generate income. It capitalizes the net operating income to estimate value.
Related Kentucky Property Valuation Questions
- A Kentucky appraiser reviewing recent 'flip' transactions (buy-renovate-sell) in a neighborhood must:
- The principle of contribution states that:
- The gross income multiplier (GIM) used in commercial property valuation is calculated as:
- Plottage in Kentucky real estate means:
- The principle of substitution holds that:
- When making adjustments in the sales comparison approach, if a comparable property has a feature the subject property lacks, the appraiser should:
- A Kentucky appraiser is asked to appraise a church building. The most appropriate valuation approach is likely:
- A Kentucky appraiser determines the highest and best use of a vacant lot. The analysis must consider uses that are:
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