The "income approach" is a way to figure out the current value of a property based on the money it will make from "rental income" in the future. There are three ways to figure out the value of a property: the "cost approach", the "income approach", and the "sales comparison approach".
These are questions that the above text answers:
1. What is the income approach in real estate appraisal?
2. How does the income approach determine the value of a property?
3. What are the three methods used to determine the value of a property?
4. What is rental income and how does it factor into the income approach?
5. What is the cost approach in real estate appraisal?
6. What is the sales comparison approach in real estate appraisal?
7. How does the income approach differ from the cost approach and the sales comparison approach?
8. Why is the income approach considered important in determining the value of a property?
9. What factors are considered when using the income approach in real estate appraisal?
10. How does the income approach help in unlocking the value of real estate?