This method is used to estimate the value of income-producing properties. The appraiser will determine how much a property would rent for and then calculates what it is worth based on this amount. For ...

A commercial real estate appraisal assesses property value based on income generation, unlike residential comps. Valuations utilize methods like income approach, gross rent multiplier, and cost ...

The income approach is a real estate valuation method that uses the income the property generates to estimate fair value. It's calculated by dividing the net operating income by the capitalization ...

To calculate its GRM, we divide the sale price (or property value) by the annual rental income: $500,000 ÷ $90,000 = 5.56. You can compare this figure to the one you're looking at, as long as you ...