Property Valuation
The gross rent multiplier (GRM) is calculated by dividing the:
ANet operating income by the cap rate
BSales price by the gross monthly rent✓ Correct
CAnnual rent by the assessed value
DSales price by the net operating income
Explanation
GRM = Sales Price ÷ Gross Monthly Rent. It is a quick valuation tool for residential income properties, though it does not account for operating expenses.
Related Connecticut Property Valuation Questions
- Functional obsolescence caused by a feature that modern buyers consider undesirable (e.g., a one-car garage in a neighborhood where two-car garages are standard) is called:
- In the sales comparison approach, a comparable sale that sold 18 months ago would typically require:
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- A Connecticut appraiser is valuing a vacant commercial lot. Which approach would be MOST appropriate?
- A gross rent multiplier (GRM) is calculated by:
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