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building residual technique - an appraisal term describing an approach to the valuation of improvements. The annual income that the land as though vacant would command is subtracted from the annual net operating income of the land plus improvements to yield the annual income attributable to the improvements. The income is then capitalized to determine the value of the improvements. See also capitalization and net operating income .
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© 2004 Bella Vista Publishing Company, Inc. ISBN 0-9718225-0-6
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