income capitalization approach

income capitalization approach

See income approach.

References in periodicals archive ?
Many investment properties are valued on the income capitalization approach, or CAP rate.
The income capitalization approach depends on reliable and detailed information on the income and the expenses for a particular piece of property.
Part 1 offers elementary instruction in the income capitalization approach to value, and builds the foundation for further study of analytical and discounting methods and procedures in Parts 2 and 3.
Rates and Ratios: Making Sense of GIMs, OARs and DCF will focus on the different models used in the income capitalization approach and how they relate to each other.
Both experts relied on the income capitalization approach to valuing the subject property.
For example, when valuing an income producing property, many appraisers will deducted local property taxes as an expense item to determine the net rent to be capitalized when using the income capitalization approach to value.
The income capitalization approach focuses on the cash flow of the property.
Thus, the income capitalization approach is circular to the cost approach and is not probative to value.
The income capitalization approach estimates market value based upon the future cash flows expected to be generated from the property.
Property valuation methods for determining market value are usually categorized into three broad approaches: the sales comparison approach, income capitalization approach, and cost approach.
The course will review the valuation process and discuss appraisal mathematics, cost approach, and income capitalization approach.
For 14 properties with ADUs in Portland, Oregon, an income capitalization approach yielded valuations significantly higher than actual sale prices, by 7.