Property Valuation
The income capitalization approach is most commonly used to appraise:
ASingle-family homes in suburban neighborhoods
BIncome-producing commercial properties✓ Correct
CNew construction homes
DVacant land
Explanation
The income capitalization approach converts income into a value estimate and is most appropriate for income-producing properties such as apartment buildings, office buildings, and shopping centers.
Related Michigan Property Valuation Questions
- The principle of substitution in appraisal states that a buyer will not pay more for a property than:
- Which type of depreciation in the cost approach is considered incurable?
- In Michigan, a 'discounted cash flow' (DCF) analysis is used to:
- In Michigan, a 'competitive market analysis' (CMA) performed by a real estate agent differs from an appraisal because:
- In Michigan, 'insurable value' differs from market value because it:
- The replacement cost in Michigan's cost approach represents:
- The sales comparison approach to value is based on the principle of:
- External obsolescence in appraisal refers to:
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