Property Valuation
When appraising an income-producing property in Tulsa, the gross rent multiplier (GRM) is calculated as:
ANet Operating Income ÷ Cap Rate
BSale Price ÷ Gross Annual Rental Income✓ Correct
CMonthly Rent × 12 ÷ Expenses
DAssessed Value × Mill Rate
Explanation
The Gross Rent Multiplier (GRM) = Sale Price ÷ Gross Annual (or monthly) Rental Income. It is a simple rule-of-thumb tool to estimate value. A lower GRM indicates a better value relative to rental income.
Related Oklahoma Property Valuation Questions
- When an Oklahoma appraiser determines that a neighborhood is in the 'declining' phase of the neighborhood life cycle, this observation affects value estimates by:
- When appraising a luxury home in the Nichols Hills area of Oklahoma City, the appraiser would use comparable sales from:
- An Oklahoma appraiser is asked to estimate market value. Market value is defined as:
- When an Oklahoma appraiser considers 'externalities' affecting value, they are examining:
- When an Oklahoma appraiser adjusts for gross living area (GLA) in the sales comparison approach, the adjustment is based on:
- Oklahoma appraisers must be licensed or certified under:
- In Oklahoma, when an appraiser calculates the replacement cost of a building, they estimate:
- An Oklahoma appraiser's final opinion of value in an appraisal report is expressed as:
Practice More Oklahoma Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oklahoma Quiz →