Property Valuation
An appraiser uses the income approach to value a New Orleans commercial building. The property produces a net operating income of $60,000 annually. Using a 6% capitalization rate, what is the estimated value?
A$750,000
B$900,000
C$1,000,000✓ Correct
D$1,200,000
Explanation
Value = NOI ÷ Cap Rate = $60,000 ÷ 0.06 = $1,000,000.
Related Louisiana Property Valuation Questions
- A Louisiana appraiser must be 'independent' in their work because bias or partiality would:
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