Real Estate Math
A commercial property generates monthly gross rents of $8,500. The GRM for the area is 120. What is the estimated value?
A$850,000
B$1,020,000✓ Correct
C$720,000
D$1,200,000
Explanation
Estimated value = Monthly gross rent × GRM = $8,500 × 120 = $1,020,000. Using the values given ($8,500), apply the appropriate formula.. The correct answer is $1,020,000.. This is a common calculation on the Nebraska real estate exam.
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