Property Valuation
In Michigan, 'gross rent multiplier' (GRM) as a valuation method is most suitable for:
ALarge commercial office buildings
BSingle-family or small residential rentals where quick estimates are needed✓ Correct
CSpecial-use properties like schools
DAgricultural land
Explanation
GRM is a simple valuation shortcut suitable for single-family or small residential rental properties where detailed income data may not be readily available, providing a quick market value estimate based on gross rent without deducting expenses.
Related Michigan Property Valuation Questions
- A Michigan appraiser performing a '1004 UAD' (Uniform Appraisal Dataset) residential appraisal must:
- In Michigan, 'regression' and 'progression' principles in appraisal state that:
- Functional obsolescence in an appraisal refers to:
- In Michigan, a 'competitive market analysis' (CMA) performed by a real estate agent differs from an appraisal because:
- In Michigan, the 'paired sales analysis' technique in appraisal is used to:
- In Michigan, the cost approach to value estimates:
- A Michigan home is appraised using the GRM method. Monthly rent is $1,500 and the GRM for comparable properties is 140. What is the estimated value?
- A Michigan appraiser notes that a subject property's bathroom has outdated fixtures. This type of depreciation is called:
Practice More Michigan Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Michigan Quiz →