Property Valuation
In South Dakota, the 'gross income multiplier' (GIM) method of valuing commercial property differs from the 'gross rent multiplier' (GRM) in that:
AGIM uses annual income while GRM uses monthly income
BGIM typically uses all gross income from the property (not just rental income), making it more applicable to diverse commercial properties✓ Correct
CGRM is only used for apartment buildings while GIM is only for office buildings
DThere is no practical difference between GIM and GRM
Explanation
The GIM uses total gross income from all sources (rent, parking, vending, etc.), making it more appropriate for commercial properties with diverse income streams.
Related South Dakota Property Valuation Questions
- In South Dakota, when an appraiser uses the 'gross rent multiplier' (GRM) method for a single-family rental, they divide:
- In South Dakota, the 'discounted cash flow' (DCF) method in commercial real estate calculates:
- In South Dakota, a 'field review' appraisal involves:
- In the income approach to value, the 'capitalization rate' in South Dakota commercial real estate primarily reflects:
- In South Dakota, 'capitalization rate' and 'discount rate' are related but different. The cap rate is used for:
- An appraiser uses the income capitalization approach to value a South Dakota commercial property. The net operating income is $75,000 and the capitalization rate is 8%. What is the indicated value?
- In South Dakota, an 'automated valuation model' (AVM) is best described as:
- In a South Dakota appraisal, 'economic obsolescence' (external obsolescence) is caused by:
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