Property Valuation (alternative)
In Maryland, an appraiser values a rental property's parking facility by analyzing comparable sales with and without parking. This is called:
ARegression analysis
BPaired sales analysis to extract the value contribution of parking✓ Correct
CA GRM adjustment
DA cost approach to parking
Explanation
Paired sales analysis compares otherwise similar properties with one specific difference to isolate and measure the value contribution of that feature — in this case, parking.
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Key Terms to Know
Gross Rent Multiplier (GRM)
A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
AppraisalA professional estimate of a property's market value prepared by a licensed or certified appraiser.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Math Concepts
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