- Definition: Income Approach
-
This is defined as first determining the anticipated income over a fixed period of time. Once the Income stream has been established, the appraiser then applies the appropriate Capitalization Rate to the income stream to arrive at the property's current value. In many instances the residual value (the estimated future value of the property at the expiration of the lease) is added to the present value of the income stream to arrive at the property’s total value.
Contributed By:
- Real Estate
- Popular Topics in Real Estate
- The Expertise Imperative and Compliance Technology
- Access to a diverse array of specialized expert inputs drives superior decisions in every organizational context: within corporations, by investors and consultancies, and within nonprofits. When decision makers are confident of their decision inputs, they can respond more quickly and creatively to challenges and opportunities.
This page may include content provided by Council Members, your access to which is subject to the Terms of Use.
