Property Valuation
The income capitalization approach to value is most appropriate for:
AOwner-occupied single-family homes
BIncome-producing properties such as apartment buildings✓ Correct
CVacant land with no income
DProperties in historic districts
Explanation
The income capitalization approach converts a property's income stream into value and is most appropriate for income-producing properties where investors base purchase decisions on income potential.
Related Massachusetts Property Valuation Questions
- A Massachusetts appraiser discovers that a comparable sale was a distress sale (bank foreclosure) that sold 20% below market. The appraiser should:
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