In April 2026, a lender reviews an appraisal of a three-unit property in which the appraiser included an income approach. Which support would best satisfy that part of the report?
Correct Answer
C) Comparable rental data, comparable sales data, and the GRM calculations used
When the income approach is used, the report should show the support for market rent and the GRM relationship, including comparable rentals, comparable sales, and the calculations applied. That gives the reader a way to test whether the income conclusion is anchored in the market rather than in unsupported judgment.
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- → An appraiser is using the income approach to value a 12-unit rental building in Brooklyn. The building generates $180,000 in annual gross rental income. Operating expenses total $54,000 annually. The appraiser determines that a 7.5% capitalization rate is appropriate for this type of property in this location. What is the indicated value using the income approach?
- → An example of functional obsolescence is:
- → The best method to determine fair market value is:
- → Who typically hires the appraiser in a real estate transaction?
- → A depth table is used to estimate property value for:
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- → FIRREA (Financial Institutions Reform, Recovery, and Enforcement Act) requires:
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