Property Valuation
The 'gross rent multiplier' (GRM) is calculated as:
AA. Annual Net Operating Income ÷ Purchase Price
BB. Purchase Price ÷ Annual Gross Rent✓ Correct
CC. Monthly Rent × 12 ÷ Cap Rate
DD. Annual Gross Rent ÷ Vacancy Rate
Explanation
GRM = Purchase Price ÷ Annual Gross Rent (or Monthly Rent for a monthly GRM). It is a quick valuation tool for comparing income properties but does not account for expenses.
Related Georgia Property Valuation Questions
- The 'band of investment technique' in the income approach is used to:
- A 'drive-by' appraisal (exterior-only inspection) is:
- Which of the following would be considered an arm's-length transaction for comparable sales purposes?
- Physical deterioration in the cost approach is divided into:
- Functional obsolescence in real property refers to:
- In an appraisal, a comparable sale that is superior to the subject property requires the appraiser to:
- An appraiser who conducts an appraisal for a client who is also the appraiser's relative must:
- The land residual technique in appraising is used when:
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →