Property Valuation

A Mississippi appraiser is appraising an income property and considers the 'stabilized occupancy' assumption. Stabilized occupancy means:

AThe property is always 100% occupied
BThe typical long-term occupancy rate expected for the property type in its market, excluding temporary conditions✓ Correct
COccupancy at the time of the appraisal inspection
DThe minimum occupancy required by the lender

Explanation

Stabilized occupancy represents the long-term typical occupancy for the property type and market, not the current occupancy (which may be temporarily above or below stabilized). A newly constructed property may have lower current occupancy (lease-up phase) but is appraised at stabilized rates to reflect long-term income potential.

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