Real Estate Math
A Maine property has a gross rent multiplier of 12 and monthly rents of $3,500. The estimated market value is:
A$378,000
B$504,000✓ Correct
C$420,000
D$252,000
Explanation
Annual rent = $3,500 × 12 = $42,000. Value = Annual rent × Annual GRM = $42,000 × 12 = $504,000. Using the values given ($3,500), apply the appropriate formula.. The correct answer is $504,000.. This is a common calculation on the Maine real estate exam.
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