Property Valuation
In Maryland, the income capitalization approach is MOST useful for appraising:
AOwner-occupied single-family homes
BIncome-producing properties such as apartment buildings and commercial properties✓ Correct
CVacant land
DSpecial-purpose properties like churches
Explanation
The income approach is most applicable to income-producing investment properties where buyers' decisions are based on the income the property generates.
Related Maryland Property Valuation Questions
- Maryland market rent is defined as:
- In a competitive market analysis (CMA), a Maryland real estate agent compares the subject property to:
- In the sales comparison approach, an appraiser makes adjustments to comparables for differences. If a comparable has a feature the subject does NOT have, the adjustment to the comparable is:
- In Maryland, the gross rent multiplier (GRM) is found by:
- In an appraisal, when a comparable property sold is superior to the subject property in a specific feature, the appraiser will:
- The cost approach to value is MOST reliable for appraising:
- Effective age in an appraisal refers to:
- An appraiser is estimating the value of a commercial property primarily using the income approach. Which data is MOST important?
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