Property Valuation
A Michigan home is appraised using the GRM method. Monthly rent is $1,500 and the GRM for comparable properties is 140. What is the estimated value?
A$180,000
B$210,000✓ Correct
C$195,000
D$225,000
Explanation
Value = Monthly Rent × GRM = $1,500 × 140 = $210,000. Using the values given ($1,500), apply the appropriate formula.. The correct answer is $210,000.. This is a common calculation on the Michigan real estate exam.
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