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Yield capitalization: An income approach method, that would not be the only method, of estimating value used for commercial property in which the appraiser uses several years' of income and the reversion from the sale that is discounted to present value. See Direct capitalization where only one year's income is considered.

Yield rate: A rate of return on an investment expressed as a percentage which is arrived at by taking the annual net income from the property and dividing it by the cost or market value of the property.

 

 

 


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