Property Valuation
What is the 'gross rent multiplier' (GRM) method used for in Delaware?
ACalculating property taxes
BA quick estimate of property value based on gross rental income✓ Correct
CDetermining commission rates for rental properties
DCalculating depreciation for tax purposes
Explanation
The GRM is a quick valuation method for income properties: Value = Gross Rent × GRM. It is less precise than the capitalization approach because it does not account for vacancies or expenses.
Related Delaware Property Valuation Questions
- What is 'paired sales analysis' in real estate appraisal?
- Gross rent multiplier (GRM) is calculated as:
- The income capitalization approach to value is most appropriate for:
- The principle of conformity states that:
- Which approach to value is most appropriate for a Delaware single-family residence in a neighborhood of recent sales?
- What is the principle of substitution in real estate appraisal?
- A Delaware appraisal determines the value of a residential property at $350,000. The bank's loan officer believes the value should be $390,000. Who has the authority to change the appraised value?
- A property's land-to-building value ratio is important in the cost approach because:
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →