Property Valuation
The 'land residual technique' in Virginia appraisal is used when:
AThe building value is known and land value is to be derived✓ Correct
BThe land value is known and the building's contribution is to be derived
CBoth land and building values are unknown
DOnly the income approach is available
Explanation
The land residual technique subtracts the building's income contribution (building value × cap rate) from total NOI to find the land's income, which is then capitalized to find land value. It is used when building value is known.
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