Property Valuation
In NC real estate, 'gross rent multiplier' (GRM) is calculated as:
ANet operating income divided by cap rate
BSale price divided by gross annual or monthly rent✓ Correct
CSale price divided by net income
DAnnual rent multiplied by vacancy rate
Explanation
GRM equals sale price divided by gross rent (monthly or annual). It is a quick way to estimate value for rental properties without detailed expense analysis.
Related North Carolina Property Valuation Questions
- The principle of 'progression' in real estate appraisal states that:
- Which type of depreciation in real estate CANNOT be cured by the owner?
- In the cost approach, what does accrued depreciation include?
- Which appraisal approach is typically given the most weight when appraising a single-family home in Greensboro, NC?
- In the sales comparison approach, a positive adjustment to a comparable sale means:
- A NC property's capitalization rate is determined primarily by:
- In the cost approach, reproduction cost is the cost to:
- A capitalization rate in real estate is:
Practice More North Carolina Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Carolina Quiz →