Question $4$

$3\mathrm{.}5pts$

An appraiser is developing a real property appraisal for a local bank for an improved, owneroccupied restaurant property. The restaurant is a sit$-$down, white$-$tablecloth operation with an expensive menu. The owner$/$applicant thinks his property value is enhanced because of the success of his restaurant within the facility due to his superior menu, so he makes a pitch to the appraiser about gross income from food sales. This owner is

Incorrect in his pitch because the owner is confusing the real estate value with the intangible $($business enterprise$)$ value

Correct in his pitch because the success of the business will enhance the property value

Correct in his pitch only if the business shows long$-$term income growth from food sales

Incorrect in his pitch because food sales income is considered to be too speculative and difficult to value