Property Valuation
The income approach to value is most often used for:
ASingle-family homes
BVacant land
CIncome-producing properties such as apartment buildings✓ Correct
DSpecial-use properties like churches
Explanation
The income approach is primarily used for income-producing investment properties such as apartment buildings, office buildings, and retail centers.
Related New Mexico Property Valuation Questions
- In New Mexico, a 'highest and best use' analysis for a vacant commercial lot would consider all of the following EXCEPT:
- In New Mexico, which factor is MOST important in determining the value of a commercial retail property in Albuquerque?
- In New Mexico, when an appraiser selects 'comparable sales,' the most important factors are:
- In New Mexico, a 'feasibility study' for a new residential development would analyze:
- In New Mexico, which principle states that the maximum value of a property is determined by what a buyer could pay for a similar substitute property?
- In New Mexico, the 'income capitalization approach' is most appropriate for valuing:
- In New Mexico, when an appraiser reports 'absorption rate' for a new subdivision, they are measuring:
- In New Mexico, when there are very few recent comparable sales (e.g., in a remote rural area), an appraiser might place more weight on the:
Practice More New Mexico Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free New Mexico Quiz →