income capitalization approach

income capitalization approach

See income approach.

References in periodicals archive ?
They also both agreed that there was a lack of comparable sales data so the income capitalization approach was not appropriate.
The income capitalization approach depends on reliable and detailed information on the income and the expenses for a particular piece of property.
The income capitalization approach is a set of procedures through which an appraiser derives a value indication for an income-producing property, by converting its anticipated benefits (cash flows and reversion) into property value.
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.
The income capitalization approach focuses on the cash flow of the property.
This simple technique for estimating overall capitalization rates is preferred and will produce a reliable indication of value by the income capitalization approach if three conditions are met.
The focus of this article is on the valuation of the leased fee interest using an income capitalization approach.
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.
Clearly the cost approach does not apply to underground rights, as there are no improvements to be built; however, the income capitalization approach and sales comparison approach can be considered.
The income capitalization approach estimates market value based upon the future cash flows expected to be generated from the property.
Beacon's appraiser testified the fair market value of the lease based on the income capitalization approach was $48 million.
The course will review the valuation process and discuss appraisal mathematics, cost approach, and income capitalization approach.