Property & OwnershipQuestion 91 of 120
The income capitalization approach is MOST appropriate for valuing:
a.A vacant lot
b.A brand-new custom home
c.A historic monument
d.An income-producing apartment building
Explanation
The income approach converts a property's expected net operating income into value using a capitalization rate, making it ideal for rental and commercial properties. Owner-occupied homes are usually valued by the sales comparison approach.
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