Property Valuation
The gross income multiplier (GIM) differs from the GRM in that GIM uses:
ANet operating income instead of gross income
BAnnual gross income rather than monthly gross rent✓ Correct
CCapitalization rates rather than income multiples
DAssessed value rather than market value
Explanation
The GIM uses annual gross income (not monthly rent like the GRM). GIM = Sale Price ÷ Annual Gross Income.
Related Arkansas Property Valuation Questions
- The capitalization rate (cap rate) is calculated by dividing:
- A cap rate of 5% versus a cap rate of 10% on the same NOI would indicate:
- Which appraisal approach estimates value by analyzing recent sales of comparable properties?
- The cost approach to value is MOST appropriate for appraising:
- Net operating income (NOI) is calculated as:
- When analyzing a sale for use as a comparable, the appraiser should first verify that it was an:
- Reconciliation in appraisal refers to:
- Direct capitalization in the income approach converts income into value by:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →