Property Valuation
What is the 'band of investment' technique used for in South Carolina commercial appraisals?
ACalculating the assessed value for tax purposes
BDeriving an overall capitalization rate based on debt and equity components✓ Correct
CEstimating the replacement cost of improvements
DDetermining the gross rent multiplier
Explanation
The band of investment technique derives the overall cap rate by weighting the mortgage interest rate and the equity return rate based on the proportion of debt and equity financing.
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