Property Valuation
The 'gross rent multiplier' (GRM) method is considered a quick, simplified income approach. It does NOT account for:
AGross income from rent
BPurchase price of the property
COperating expenses, vacancy, or credit losses✓ Correct
DMarket conditions
Explanation
The GRM uses only gross rent (not net income) relative to the sale price. It does not deduct operating expenses, vacancy, or other factors — making it a rough estimate, not a precise income approach analysis.
Related North Carolina Property Valuation Questions
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