Property Valuation
In New Mexico, the 'income capitalization approach' is most appropriate for valuing:
AOwner-occupied single-family homes
BIncome-producing properties such as apartment complexes, office buildings, and retail centers✓ Correct
CVacant land only
DNew construction
Explanation
The income capitalization approach converts a property's income stream into an estimate of value and is most reliable for income-producing properties where investors make purchase decisions based on return on investment.
Related New Mexico Property Valuation Questions
- An appraiser in Taos uses the cost approach to value a new adobe home. Which of the following would be included in the cost estimate?
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