The appraisal technique used to estimate real property value by capitalizing net income.
the process of estimating the market value of a property by comparing the net rental income the property would produce over its remaining effective life with the yields that could be obtained from other kinds of investments of comparable risk.
One of three methods in the appraisal process, which analyzes income and expenses, then uses a capitalization rate to arrive at value.
A method of appraising property basing the value upon the net amount of income produced by the property. It is calculated by subtracting the expenses of the property from the total income to determine the net profit. Also known as the Capitalization Method or Investor“s Method.
A method used by real estate appraisers to predict a property's anticipated future income. Income property includes shopping centers, hotels, motels, restaurants, apartment buildings, office space and so forth.
The Income Approach to Value is one of the methods used to determine the value of property; it is a method used when the property is of the type typically purchased to generate income. The method relies on projected gross income, expenses, and a specified capitalization method and rate. See page 28.
An estimate of value based on the monetary returns that a property can be expected to generate; capitalization. Contrast with the cost approach to value and the market data approach to value.
An appraisal method of estimating the value of an income-producing property by capitalizing its estimated annual net income during its remaining useful life.