Which of the following is true about the GRM method?

The GRM (Gross Rent Multiplier) method is designed to give a quick estimate of value for residential properties based on their rental income. While it is a useful tool, it should not be relied upon exclusively to determine property values. The accuracy of the GRM method can be influenced by factors such as market conditions, individual property characteristics, and location nuances that it does not account for.

Using the GRM method alone may lead to an incomplete valuation because it does not consider other important variables, such as operational expenses, local market trends, and property condition, which are critical for a comprehensive appraisal. Therefore, it's recognized that while the GRM can provide a rough guideline, a more thorough approach involving multiple valuation methods is necessary to ensure a robust and accurate property assessment.