Property Valuation
Vermont's 'land residual technique' in appraisal is used when:
AThe land value is well established and the building value is unknown
BThe income attributable to the building is known and the residual income is used to value the land✓ Correct
CThe building is older than the land
DOnly for agricultural land valuation
Explanation
The land residual technique estimates land value by subtracting the income attributable to the building improvements from total NOI, capitalizing the residual income to arrive at land value. It is used when land value is uncertain.
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