Property Valuation
The gross rent multiplier (GRM) method of valuation works best for:
AComplex commercial properties with multiple income streams
BSmaller residential income properties where reliable comparable GRMs are available✓ Correct
CVacant land
DSpecial-use properties
Explanation
GRM is a quick, simple method best suited for small residential income properties (duplexes, fourplexes) where comparable GRMs can be extracted from recent sales. It is too simplistic for complex commercial properties.
Related Utah Property Valuation Questions
- When comparing sales in the sales comparison approach, adjustments are made to the:
- Over-improvement of a Utah property (building a much more expensive home than typical for the neighborhood) is an example of:
- The gross income multiplier (GIM) differs from the gross rent multiplier (GRM) in that the GIM uses:
- The capitalization rate (cap rate) in real estate appraisal represents:
- The cost approach to value is most reliable for:
- A 'drive-by' or exterior-only appraisal in Utah is typically used for:
- Functional obsolescence in property valuation refers to:
- External obsolescence in Utah might be caused by:
Practice More Utah Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Utah Quiz →