Property Valuation
The 'income capitalization approach' to value is most appropriate for:
AA buyer's primary residence in Concord, NH
BAn income-producing property such as a multi-family building or commercial space in Manchester✓ Correct
CA vacant lot in rural NH
DA single-family home with no rental history
Explanation
The income capitalization approach estimates value based on a property's ability to generate income. It is most appropriate for investment properties (apartment buildings, commercial spaces) where buyers make decisions based on income potential and return on investment.
Related New Hampshire Property Valuation Questions
- A NH appraiser's 'scope of work' in an appraisal report describes:
- In the income approach to value, the capitalization rate is used to:
- Paired sales analysis in appraising is used to:
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- What does 'effective age' mean in a real estate appraisal?
- The 'principle of balance' in NH real estate appraisal states that:
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