Property Valuation
The income capitalization approach to value is MOST appropriate for appraising:
AA single-family owner-occupied home
BIncome-producing commercial or residential rental properties✓ Correct
CA vacant lot in a residential subdivision
DA new construction home with no rental history
Explanation
The income capitalization approach converts anticipated future income into present value. It is most appropriate for income-producing properties like apartment buildings, retail centers, and office buildings.
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