Real Estate Math
A house rents for $1,500/month. The gross rent multiplier (GRM) in the area is 120 (monthly). What is the estimated value?
A$180,000✓ Correct
B$18,000
C$150,000
D$195,000
Explanation
Value = Monthly Rent × GRM = $1,500 × 120 = $180,000. Using the values given ($1,500), apply the appropriate formula..
Related Alabama Real Estate Math Questions
- An agent earns a 3% commission on both sides of a transaction. The home sold for $425,000. How much did the agent earn in total?
- A 40-acre parcel is how many square feet? (1 acre = 43,560 sq ft)
- An investor purchased a duplex for $280,000. Each unit rents for $950/month. Annual operating expenses are $14,400. What is the annual NOI?
- A property was listed for $310,000 and sold for $295,000. What was the sales price as a percentage of the list price?
- A property has 18 units. Each unit rents for $775/month. The building sold with a GRM of 9 (annual). What was the sale price?
- A property has an NOI of $42,000 and debt service of $30,000 per year. What is the before-tax cash flow?
- The interest rate is 6.5% annually. A $165,000 loan has been outstanding for one year. How much interest accrued?
- An agent earns a 6% commission on a sale. The listing side gets 3% and the selling side gets 3%. The home sold for $350,000. How much does each side earn?
Practice More Alabama Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Alabama Quiz →