Property Valuation
The Gross Rent Multiplier (GRM) is calculated as:
ASale Price ÷ Annual NOI
BSale Price ÷ Monthly Gross Rent✓ Correct
CNOI ÷ Sale Price
DMonthly Rent × 12
Explanation
GRM = Sale Price ÷ Monthly Gross Rent. It is a quick valuation shortcut used for small income properties, though it does not account for expenses.
Related Georgia Property Valuation Questions
- The sales comparison approach to value is most appropriate for:
- The gross rent multiplier (GRM) is calculated by dividing the:
- The gross income multiplier (GIM) for annual rents is calculated as:
- The 'land-to-value ratio' in real estate investment analysis is used to:
- In the cost approach, 'physical depreciation' is divided into which categories?
- In real estate appraisal, 'highest and best use' must satisfy which criteria?
- A Georgia property has an annual NOI of $54,000 and a capitalization rate of 6%. What is the estimated value?
- A 'retrospective appraisal' values a property:
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