The Income Approach Would Be Best Used In Appraising A N

The others are the cost approach and the comparison approach.

The income approach would be best used in appraising a n. Compared to the other two techniques the sales comparison approach and the cost approach the income approach is more complicated and therefore it is often confusing for many commercial real estate professionals. Investors use this calculation to value properties based on their profitability. Several types of appraisal methods are used to value a property including the market approach and the income approach of appraisal systems. The income approach is one of three techniques commercial real estate appraisers use to value real estate.

The fundamental math is similar to the methods used for financial valuation securities analysis or bond pricing. Another type of appraisal method is the cost type where the cost to replace an existing property in a similar condition is determined.