medium · National Real Estate Exam valuation
Why might an appraiser find that Gross Rent Multipliers differ significantly between two neighborhoods?
- The GRM is a fixed statutory figure set by the county zoning board each year.
- One neighborhood simply has much higher property tax rates, which the GRM accounts for directly.
- The number of bedrooms found in the houses differs significantly between the two areas being compared.
- The neighborhoods have different market expectations for future appreciation and risk.
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