Property Valuation
What is a 'gross income multiplier' (GIM) used for in North Dakota commercial property valuation?
AEstimating a property's value by multiplying annual gross income by a factor derived from comparable sales✓ Correct
BCalculating the after-tax return on investment
CMeasuring the physical size of a building
DDetermining the property's square footage
Explanation
The Gross Income Multiplier (GIM) estimates value by multiplying annual (or monthly) gross income by a market-derived factor. It is a simplified income method used for quick estimates on commercial and multi-family properties.
Related North Dakota Property Valuation Questions
- A North Dakota appraiser must disclose a prior service relationship with a party to the transaction in their appraisal report because:
- A North Dakota appraiser noting 'curable physical deterioration' on a property is referring to:
- Which of the following North Dakota properties would MOST likely be valued using the cost approach?
- In North Dakota, the 'comparable sales grid' used in the sales comparison approach requires an appraiser to make adjustments for differences between the subject property and each comparable. Adjustments are made to:
- In North Dakota, which appraiser certification level is required to appraise a non-residential property with a transaction value over $500,000 for federally related transactions?
- The 'income capitalization approach' is most appropriate for valuing which type of North Dakota property?
- A North Dakota appraiser is making adjustments to comparable sales. If a comparable home sold for $250,000 but has an extra bathroom that the subject property lacks, the appraiser would:
- A North Dakota appraiser developing a 'restricted appraisal report' is providing:
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