Property Valuation
In Nevada, which approach to value is most commonly used to appraise a high-occupancy apartment building?
ASales comparison approach
BCost approach
CIncome capitalization approach✓ Correct
DGross rent multiplier only
Explanation
The income capitalization approach is the primary approach for income-producing properties like apartment buildings, as buyers are primarily motivated by the income stream. The direct capitalization method (Value = NOI ÷ Cap Rate) is most common.
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