Ch 11: Income Approach to Real Estate Valuation

About This Chapter

If you would like to learn more about the income approach to real estate valuation, view the lessons in this chapter. Our professional instructors help you review all of the information you need to know in order to master these key concepts related to income approach and the effects of capitalization.

Income Approach to Real Estate Valuation - Chapter Summary

This chapter helps you recall important aspects of income approach in real estate. Instructors present each lesson in a fun and engaging manner. By the end of the chapter, you will have reviewed:

  • Definition of income approach to property valuation
  • The income capitalization approach to property valuation
  • Sources of income, occupancy and expenses
  • Effects of capitalization and derivation of capitalization rates
  • Difference between direct capitalization and yield capitalization

Every one of these convenient lessons features a short quiz. These quizzes ask questions about the topics covered in the lessons. You'll get immediate results from the quizzes, so you'll know what your strengths and weaknesses are. We also include a chapter test that goes over all of the lessons found in this chapter. This assessment provides a comprehensive way for you to test your knowledge before moving on. If you find yourself getting stuck, our professional instructors are here to help you.

5 Lessons in Chapter 11: Income Approach to Real Estate Valuation
Test your knowledge with a 30-question chapter practice test
The Income Approach to Property Valuation

1. The Income Approach to Property Valuation

The income approach to property valuation is a useful tool for investors to evaluate income producing real estate. We will discuss the three major formulas that comprise the approach.

The Income Capitalization Approach for Appraisals

2. The Income Capitalization Approach for Appraisals

Every real estate investor needs to know the potential investment returns of a property before buying. The income capitalization approach to appraisals helps investors figure out a maximum purchase price for a particular rental property.

Effects of Income & Expenses on Real Estate Valuation

3. Effects of Income & Expenses on Real Estate Valuation

In this lesson we will review the common sources of income and expenses that factor into and determine the price that an investor should pay for a piece of real estate.

Effects of Capitalization on Real Estate Valuation

4. Effects of Capitalization on Real Estate Valuation

What is the income approach in the appraisal process? When is it generally used? This lesson will explain and give examples of how capitalization affects valuation using the income approach. You will also learn about multipliers, equity rates, yield capitalization, and discover how to calculate the net operating income of a property.

Estimating Real Estate Value Using the Income Approach

5. Estimating Real Estate Value Using the Income Approach

Sellers use market value to set their list price. Buyers use it to decide the amount they will offer for a property. Learn how to estimate market value using one of the three long-established approaches to valuation, the income approach.

Chapter Practice Exam
Test your knowledge of this chapter with a 30 question practice chapter exam.
Not Taken
Practice Final Exam
Test your knowledge of the entire course with a 50 question practice final exam.
Not Taken

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