Property Valuation
A Connecticut rental property generates $72,000 in annual gross rents. Similar properties in the market sell for a GRM of 14. The estimated value using the gross rent multiplier is:
A$1,008,000✓ Correct
B$864,000
C$720,000
D$1,440,000
Explanation
Value = GRM × Annual Gross Rent = 14 × $72,000 = $1,008,000. Using the values given ($72,000), apply the appropriate formula.. The correct answer is $1,008,000.. This is a common calculation on the Connecticut real estate exam.
Related Connecticut Property Valuation Questions
- The 'principle of anticipation' in real estate appraisal states that value is:
- The cost approach is MOST reliable for appraising:
- In the income approach to value, a property's value is derived by:
- The principle of 'highest and best use' requires that it be:
- A gross rent multiplier (GRM) is calculated by:
- Functional obsolescence in real estate appraisal refers to:
- A property generates a net operating income of $48,000. If the market capitalization rate is 6%, what is the estimated value?
- The principle that value is created and maintained when a property's use is consistent with surrounding uses is called:
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