Property Valuation
The income capitalization approach to value is most appropriate for valuing:
ASingle-family owner-occupied homes
BVacant land in rural areas
CIncome-producing commercial and investment properties✓ Correct
DNew construction where cost data is available
Explanation
The income capitalization approach converts anticipated future income into a present value estimate. It is most appropriate for income-producing properties such as apartment buildings, office buildings, and retail centers.
Related Oklahoma Property Valuation Questions
- An Oklahoma REO (real estate owned) property — one acquired by a bank through foreclosure — will likely be:
- External obsolescence differs from functional obsolescence in that external obsolescence:
- When an Oklahoma appraisal is being performed for estate tax purposes, the relevant date of value is:
- Effective age in real estate appraisal refers to:
- Principles of value state that value is created by the interaction of supply and demand. Which principle holds that value is influenced by what a prudent buyer would pay for a similar property?
- Market value in real estate appraisal is defined as:
- Capitalization rate (cap rate) is calculated as:
- Paired sales analysis in Oklahoma appraisal is used to:
Practice More Oklahoma Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oklahoma Quiz →