Property Valuation
A property generates annual rental income of $96,000. An appraiser uses a gross rent multiplier (GRM) of 13 to estimate value. What is the indicated value?
A$960,000
B$1,248,000✓ Correct
C$7,384
D$1,380,000
Explanation
Value = Annual Gross Rent × GRM = $96,000 × 13 = $1,248,000. The GRM method is a quick income approach that multiplies gross annual (or monthly) rent by a market-derived multiplier. It does not account for expenses, so it is a rough indicator only.
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