Property Valuation
In Minnesota, the income approach to valuation of residential property is most appropriate for:
AOwner-occupied single-family homes
BRental properties (2-4 units or larger multifamily) where the income stream is the primary driver of value✓ Correct
CVacant residential lots
DProperties in foreclosure
Explanation
The income approach is most appropriate for income-producing residential properties (rental homes, duplexes, apartments) where buyers purchase primarily for the income stream. For owner-occupied homes, the sales comparison approach is primary; the cost approach is used for new construction or special-use properties.
Related Minnesota Property Valuation Questions
- In Minnesota, the 'highest and best use' analysis for an improved property differs from vacant land analysis in that it must also consider:
- In Minnesota, an appraiser's 'narrative report' differs from a 'form report' in that:
- In the sales comparison approach, if a comparable sale has a finished basement and the subject does not, the appraiser should:
- The principle of progression holds that:
- In Minnesota, 'effective age' of a building differs from chronological age because:
- External obsolescence in real estate refers to depreciation caused by:
- In a declining market, a Minnesota appraiser using the sales comparison approach should:
- Which appraisal approach is most commonly used to value single-family residential properties in Minnesota?
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