Problem
A. Describe the 6 steps to the Income Approach to Value? (hint: refer to slides and instructor notes for specific list) What do you think are the 2 important financial measures you are trying to determine in this process to develop Market Value in this approach?
B. What is the formula for calculating a Direct Capitalization rate using the Income Approach to Value? Describe how having two components of this formula can help you determine the value of the third component?
C. Why is Reconciliation an important part of overall Appraisal process? Could more than one Approach to Value method be applied to a Subject Property? If so, how does the Reconciliation process help the Appraiser with the data calculated?
D. What is the main difference between the content of an "Appraisal Report" vs a "Restricted Appraisal Report? What is the difference between the Report formats "Form" vs "Narrative"?