Property Valuation
A property has an annual gross income of $60,000 and a GRM of 10 (annual). What is the estimated value?
A$60,000
B$600,000✓ Correct
C$6,000
D$6,000,000
Explanation
Estimated Value = Gross Rent × GRM = $60,000 × 10 = $600,000. GRM is a quick valuation tool that does not account for expenses, so it is most useful for rough comparisons among similar income properties.
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