FinancingAppraisal_methodsMEDIUM
Alabama's income capitalization approach is used for:
Correct Answer
B) Income-producing properties, converting expected future income into present value using a capitalization rate
The income approach is the primary method for valuing rental properties, apartments, office buildings, and other income-producing real estate.
Answer Options
A
All residential homesB
Income-producing properties, converting expected future income into present value using a capitalization rateC
Vacant land onlyD
Government propertiesWhy This Is the Correct Answer
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Related Topics & Key Terms
Related Topics:
capitalization ratenet operating incomesales comparison approachcost approachgross rent multiplier
Key Terms:
income capitalizationcap ratenet operating incomeincome-producing propertypresent value
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