Property Valuation
In Virginia, an appraiser uses the 'income approach' for a shopping center. The most important step is determining the:
ACost to rebuild the mall
BMarket-level capitalization rate from comparable sales✓ Correct
CHistorical construction date
DNumber of tenants
Explanation
The capitalization rate derived from comparable investment sales is critical in the income approach. An incorrect cap rate will lead to a significantly different value conclusion.
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