Real Estate Math

An appraiser uses a GRM of 105 on a property with monthly rent of $1,200. What is the estimated value?

A$115,200
B$126,000✓ Correct
C$108,000
D$135,600

Explanation

Estimated value = Monthly rent × GRM = $1,200 × 105 = $126,000. Using the values given ($1,200), apply the appropriate formula..

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