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How Is the Income Method Used to Derive the Market

Question 38

Multiple Choice

How is the income method used to derive the market value of a property?


A) an appraiser adds up the value of all the component parts
B) an appraiser divides the net operating income generated by a rental property by the interest rate
C) an appraiser estimates what a buyer will be able to pay based on the median income in an area
D) an appraiser compares the property to properties with similar features in the same area
E) none of the above

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