Gross Rent Multiplier GRM

The GRM is a factoring tool used by the property appraiser to assess the market value of a property, under the income valuation approach. The multiplier is a rate based on the sales price divided by the gross monthly rent of comparable properties. This multiplier is then applied to the market rent of the subject property to estimate the value of that property. For example, if an appraiser is analyzing a four-flat and discovers that similar four-flats in the area have market values that are 10.5 times their market rents, the appraiser will use a GRM of 105. Applied to the subject property, the appraiser will multiply the subject property's market rental income by 10.5 to estimate the property's value via the income approach. Commercial, industrial and larger residential properties use the gross income multiplier system. For more information, see the "Analyzing Appraisal Reports" article in the "Loan Process" section.

Avoiding Credit Card Disaster

Avoiding Credit Card Disaster

People who struggle with saving money and getting out of debt will find these things in common: They don't know how to stop blaming. They have no idea where their money needs to go! They don't know they need to forget the home equity line. They also don't understand they need to sell some investments. Many more problems untold. Well don't worry, With the strategies that I’m about to let you in on , you will have no problems when it comes to understanding how to get out of credit card debt.

Get My Free Ebook

Post a comment