Class: Real Estate Appraisal   The income approach is one of…

Class: Real Estate Appraisal   The income approach is one of the primary approaches to value especially when appraising commercial real estate.  When applying this approach, Why is it necessary to analyze current market rent for the space as vacant (i.e. ignoring leases) and to provide a second analysis of the income considering the pattern of income generated by leases?

You are appraising a two-story office building.  You have di…

You are appraising a two-story office building.  You have discovered the sale of a comparable property that occurred one year ago for $600,000.  An appropriate adjustment for changing market conditions is 10% annually.  Also, this comparable requires an upward adjustment of $30,000 due to its inferior location.  What is the adjusted sale price of this comparable?