What do you need to do after determining net operating income in property valuation?

After determining net operating income (NOI) in property valuation, the next step is to capitalize it into an estimated property value. This process involves applying a capitalization rate to the NOI to estimate the property's market value based on its income-generating ability. Capitalization is a fundamental concept in real estate valuation that relies on the income approach, which assesses the value of the property based on the expected future cash flows it will produce.

Capitalizing the NOI gives a clearer picture of the financial viability of the investment and helps assess its potential return. By using the appropriate capitalization rate, which reflects the perceived risk and return of the investment, you convert the income figure into a present value estimation, forming a crucial part of property valuation.

The other options do not follow the logical sequence of property valuation after determining NOI. Selecting a location is prior to valuation, adjusting for market conditions typically occurs before calculating valuable metrics like NOI, and collecting additional sales data would be part of market analysis rather than the capitalization process itself.