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CABARRUS COUNTY 2012 APPRAISAL MANUAL <br />ANNUAL GROSS INCOME MULTIPLIER APPLICATION <br />Typical comparable sale price $150,000 <br />Typical comparable gross annual income $2,400 <br />Gross Income Multiplier (GIM) 62.5 <br />Subject parcel gross annual income $2,700 <br />Estimated Value $168,750 <br />Care must be exercised in the use of gross income multiplier. This method is only applicable where there is a high <br />degree of comparability of properties sold in the market to the property being appraised. There must also be a <br />sufficient number of qualified sales of comparable properties since a sound multiplier cannot be determined from <br />only one or two sales. <br />OVERALL RATE <br />This is the most applicable method to use in Revaluation Projects. The Overall Rate is the ratio of NOI to present <br />worth of the property. Overall rates are expressed as an annual percentage rate and are most effective when <br />derived directly from market sales. <br />GIVEN - Gross Annual Income = $30,000 <br />Vacancy /Rent Loss = 5% <br />Expenses = 30% <br />OVERALL RATE FROM MARKET = 10% <br />Gross Annual Income <br />Less Vacancy /Rent Loss <br />Less Expenses <br />Net Annual Income <br />Divided by Overall Rate <br />Total Present Value <br />Cabarrus County — 2012 Revaluation <br />$30,000 <br />-$1,500 <br />-$8,550 <br />$19,950 <br />.10 <br />$199,500 <br />INCOME PROPERTY VALUATION 8- 14 <br />05/24/01 <br />Attachment number 9 <br />G -6 Page 285 <br />