Question

income approachIt may be appropriate for a real estate professional to utilize different approaches for estimating the market value of a property depending upon the particular property type and use. Which of the following approaches would be most applicable when considering the valuation of retail office space (i.e., which approach would receive the most weight in the valuation process)?

Answer 1

Answer:

The correct answer is :  Income approach

Explanation:

It is a type of real estate appraisal method that permits people who are investors to considerate the value of a property based on the income the property generates. this approach discounts the future value of rents by the capitalization rate. It helps to identify how much the property may be sold under current market conditions.