Property Valuation
The gross rent multiplier (GRM) approach is best suited for:
ACommercial office buildings with net leases
BQuick estimations of value for small residential income properties✓ Correct
CIndustrial warehouses with triple-net leases
DOwner-occupied single-family homes
Explanation
The GRM is a simplified income valuation tool most appropriate for small residential income properties (1-4 units). It provides a quick estimate but is less precise than a full income capitalization analysis because it uses gross (not net) income.
Related Tennessee Property Valuation Questions
- In Tennessee, an appraiser's 'scope of work' determination is important because it:
- The Tennessee Appraiser Certification and Licensure Board (TACLB) is the state agency that:
- An appraisal performed for a federally regulated mortgage transaction in Tennessee must be completed by:
- In the income capitalization approach, a lower capitalization rate results in a:
- An appraisal is performed 'as of' a specific date. This date is called the:
- Deferred maintenance affects appraisal value as a form of:
- Market rent is defined as:
- Depreciation in appraisal refers to:
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