Real Estate Math
A commercial property produces monthly gross rents of $8,500. Using a gross rent multiplier (GRM) of 120, what is the estimated value?
A$960,000
B$102,000✓ Correct
C$850,000
D$1,080,000
Explanation
Annual gross rent = $8,500 × 12 = $102,000. Value = GRM × Annual gross rent = 120 × …. Using the values given ($8,500), apply the appropriate formula.. The correct answer is $102,000.. This is a common calculation on the Indiana real estate exam.
Related Indiana Real Estate Math Questions
- A buyer in Indiana wants to buy a home priced at $285,000 with a 5% down payment. What is the loan amount?
- A property in Indianapolis sells for $615,000 with a 6% commission. What is the total co-broke (buyer's broker) share if the split is 2.8% to the buyer's broker?
- An Indiana broker has monthly office expenses of $8,500. Average commission per transaction is $4,250. How many transactions per month does the broker need to break even on office expenses?
- A property in Indiana was purchased for $420,000 and held for 6 years. It appreciated 4% per year compounded. What is the approximate future value?
- An Indiana buyer has $60,000 available for a down payment. If lenders require 20% down, what is the maximum home price the buyer can purchase?
- An Indiana seller nets $245,000 after a 5.5% commission. What was the sale price?
- A broker receives a 5.5% commission on a $260,000 sale and splits it 55/45 with a cooperating broker. How much does the cooperating broker receive?
- An Indiana buyer offers $320,000 with a $15,000 earnest money deposit. The loan amount is $272,000. How much cash does the buyer bring to closing (excluding prepaid items and closing costs)?
Practice More Indiana Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Indiana Quiz →