Property Valuation
In Maine, 'gross rent multiplier' (GRM) is used to estimate value by:
ADividing the sale price by the monthly gross rent✓ Correct
BMultiplying the cap rate by the net income
CAdding depreciation to the replacement cost
DComparing sale prices per square foot
Explanation
The Gross Rent Multiplier (GRM) = Sale Price / Monthly Gross Rent. To estimate value, multiply the subject property's monthly rent by the GRM derived from comparable sales.
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