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For income-producing properties in Kentucky, an appraiser would primarily use the:

Correct Answer

D) Income capitalization approach

The income capitalization approach converts expected future income into present value. It is the primary method for valuing investment and income-producing properties such as apartment buildings, office complexes, and retail spaces.

Answer Options
A
Sales comparison approach
B
Replacement cost method
C
Cost approach
D
Income capitalization approach

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Related Topics & Key Terms

Related Topics:

net operating incomecapitalization ratedirect capitalizationdiscounted cash flowinvestment property valuation

Key Terms:

income capitalizationnet operating incomecapitalization rateinvestment propertyNOI

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