Property Valuation
The 'income capitalization approach' is most appropriate for which Mississippi property type?
AA vacant residential lot
BA new single-family home
CAn apartment complex with stable occupancy and rental history✓ Correct
DA historic church
Explanation
The income capitalization approach converts an income stream into an estimate of value. It is most applicable to income-producing properties with reliable rental histories, such as apartment complexes.
Related Mississippi Property Valuation Questions
- A Mississippi appraiser determines the cost to construct a new building is $180 per square foot. The building has 2,000 square feet. Depreciation is estimated at 20%. The depreciated improvement value is:
- When comparable sales are adjusted in the sales comparison approach, adjustments are made to the:
- A Mississippi appraiser adjusts for a comparable sale that occurred 12 months ago. The purpose of the time adjustment is to:
- A Mississippi appraiser is completing an appraisal for a mortgage lender. The 'intended use' of this appraisal is:
- When appraising a Mississippi Gulf Coast resort property, an appraiser uses the income approach and calculates an overall capitalization rate of 8.5%. The property's NOI is $102,000. The indicated value is:
- When appraising a new custom-built home with few comparable sales, which approach is MOST appropriate?
- A Mississippi commercial property's 'going-in' cap rate is 7.5% and the 'going-out' (terminal) cap rate used in a discounted cash flow analysis is 8.5%. The higher terminal cap rate generally reflects:
- A Mississippi property has a net operating income of $18,000 per year. If the capitalization rate is 9%, the indicated value using the income approach is:
Practice More Mississippi Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Mississippi Quiz →