Property Valuation (alternative)
In Maryland, when appraisers use a 'gross living area' (GLA) comparison, they typically include:
AThe full square footage of all structures on the lot
BFinished above-grade living space only (not garages, unfinished basements, or storage areas)✓ Correct
CAll square footage including basement and garage
DOnly the first floor area
Explanation
GLA typically refers to finished, above-grade living space. Basements, garages, and unfinished areas are usually measured separately and adjusted differently from the main living area.
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Key Terms to Know
Appraisal
A 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.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
Net Operating Income (NOI)The annual income generated by an income-producing property after subtracting operating expenses, but before debt service.
Math Concepts
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