Property Valuation
A Maine cottage rents for $2,500/month. Comparable properties have a GRM of 120. What is the estimated value?
A$250,000
B$300,000✓ Correct
C$200,000
D$350,000
Explanation
Estimated value = Monthly rent x GRM = $2,500 x 120 = $300,000. Using the values given ($2,500), apply the appropriate formula.. The correct answer is $300,000.. This is a common calculation on the Maine real estate exam.
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