Question

Which value approach would most likely be emphasized for an apartment building in an established neighborhood?

a. cost approach
b. income approach
c. sales comparison approach
d. all three approaches would be averaged

Answer 1

The income approach would most likely be emphasized for an apartment building in an established neighborhood.

Step-by-step explanation:

The value approach that would most likely be emphasized for an apartment building in an established neighborhood is the income approach.

The income approach estimates the value of a property based on the income it generates, typically through rent. In the case of an apartment building, the focus would be on the potential income it can generate from tenants.

The cost approach estimates the value based on the cost of replacing the property or building it from scratch, while the sales comparison approach compares the property to similar properties that have recently been sold. However, these approaches may not be as relevant for an apartment building in an established neighborhood, where its income potential is a key factor.