Property Valuation
Vermont's 'gross rent multiplier' (GRM) approach to value is most appropriate for:
ALarge commercial office buildings
BSmaller, simpler residential rental properties like single-family homes or small multifamily units when comparable GRM data is available✓ Correct
CVacant land
DSpecial-use properties like ski lodges
Explanation
The GRM approach — multiplying gross rent by the market-derived GRM — is a simplified income approach suitable for smaller residential rental properties where full income capitalization would be overly complex. It's a quick check on value rather than a primary appraisal method for complex properties.
Related Vermont Property Valuation Questions
- Which of the following best describes 'economic life' versus 'physical life' of a Vermont building?
- Vermont appraisers who specialize in appraising agricultural land must understand which Vermont program that significantly affects land use and value?
- Vermont appraisers must comply with which national professional standard for appraisal practice?
- Vermont's Killington Peak area properties may have seasonal fluctuations in value — the appraisal principle this reflects is:
- In Vermont, the 'regression principle' suggests that a high-value home placed in a neighborhood of lower-value homes will:
- Vermont's 'interim use' in highest and best use analysis refers to:
- Vermont's 'land residual technique' in appraisal is used when:
- Vermont's 'market conditions adjustment' in an appraisal is necessary when comparable sales are older because:
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