Property Valuation

In Louisiana, 'stabilized value' in an income property appraisal assumes:

AThe property is in its worst historical condition
BThe property is at normal occupancy levels typical for its market, neither recently vacant nor temporarily over-occupied✓ Correct
CThe assessed value matches the market value
DThe property has no operating expenses

Explanation

Stabilized value assumes the property is operating at normal, sustainable occupancy and income levels — not temporarily depressed due to vacancy or inflated due to above-market leases. It represents the property's long-term, sustainable income-generating potential.

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