Property Valuation
A North Dakota appraiser using the 'gross rent multiplier' (GRM) method would calculate value by:
ADividing NOI by the cap rate
BMultiplying gross monthly rent by the GRM derived from comparable sales✓ Correct
CAdding replacement cost to land value
DSubtracting depreciation from reproduction cost
Explanation
Value (GRM method) = Gross Monthly Rent × GRM. The GRM is derived from comparable sales by dividing the sale price by the gross monthly rent. This simple method is a quick indicator of value for residential income properties, though it does not account for expenses.
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