What is a notable contribution of the gross income multiplier (GIM) in real estate?

The gross income multiplier (GIM) is a valuable tool for real estate investors and appraisers as it helps in estimating the potential sales price of income-producing properties. This metric assesses the relationship between the gross income generated by a property and its market value. By using the GIM, one can easily estimate the worth of a property based on its income potential, which is particularly useful for commercial properties, multi-family units, and rental properties.

To utilize the GIM effectively, you multiply the gross annual income of the property by the GIM to arrive at an estimated sales price. This method contrasts with other valuation approaches that might require more extensive data or complex calculations. Hence, the correct option reflects the GIM's primary function in supporting investors in making informed decisions about property investments based on income performance.