Property Valuation
What is the 'income multiplier' approach to quickly estimating property value in Idaho?
AMultiplying the property's age by the average annual rent increase
BUsing a multiplier (GRM or GIM) derived from comparable sales to estimate value based on the property's gross income✓ Correct
CMultiplying square footage by the market price per foot
DMultiplying the NOI by the number of years of expected income
Explanation
The income multiplier approach uses a Gross Rent Multiplier (GRM) or Gross Income Multiplier (GIM) derived from comparable sales. Value = Gross Income x Multiplier.
Related Idaho Property Valuation Questions
- An Idaho duplex sells for $320,000 and generates $2,200/month gross rent. What is the gross rent multiplier?
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- What is 'highest and best use' in real estate appraisal?
- In the income approach, 'capitalization' means:
- In Idaho, what does a Competitive Market Analysis (CMA) primarily help determine?
- In Idaho, who is authorized to perform appraisals of real estate for federally related transactions?
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