Property Valuation
A West Virginia rental property has a gross annual rent of $24,000 and sells for $216,000. What is the gross rent multiplier (GRM)?
A7
B8
C9✓ Correct
D10
Explanation
GRM = Sale Price / Gross Annual Rent = $216,000 / $24,000 = 9. The GRM is a quick method to estimate value based on gross rental income, though it does not account for vacancies or operating expenses.
Related West Virginia Property Valuation Questions
- What is the principle of conformity in real estate valuation?
- In West Virginia, 'external obsolescence' (economic obsolescence) affecting a property's value could be caused by:
- In a West Virginia comparative market analysis (CMA), a real estate agent adjusts comparable sales to account for differences with the subject property. If a comparable sold for $165,000 but lacks a deck valued at $8,000 that the subject has, the adjusted comparable value is:
- External obsolescence (economic or locational obsolescence) in a West Virginia appraisal is caused by:
- An arm's-length transaction for real estate valuation purposes is a sale:
- In the sales comparison approach, adjustments are made to the comparable properties because:
- Highest and best use of a property is defined as the use that is:
- In a West Virginia appraisal, the principle of contribution states that:
Practice More West Virginia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free West Virginia Quiz →