Real Estate Math
A Nevada property generates $4,200 per month in gross rent. The GRM for comparable properties in the area is 130. What is the estimated property value?
A$546,000✓ Correct
B$420,000
C$504,000
D$630,000
Explanation
Using the monthly GRM method: Property Value = Monthly Rent × GRM = $4,200 × 130 = $546,000. The GRM is a quick comparative valuation tool. To verify: $546,000 ÷ $4,200 = 130 GRM. This approach is commonly used in Nevada for small residential income properties.
Related Nevada Real Estate Math Questions
- A Nevada property sells for $450,000. The listing agent's brokerage receives 3% and the selling agent's brokerage receives 2.5%. What is the total commission paid?
- A property's assessed value is $375,000. The tax rate is $1.20 per $100 of assessed value. What are the annual property taxes?
- A Nevada property has annual gross income of $48,000 and a GRM of 95 (monthly). What is the estimated property value?
- A Nevada property sells for $485,000 with a 3% commission to the listing broker. The listing broker splits the commission 50/50 with the buyer's broker. What does the listing salesperson earn if they receive 60% of their broker's share?
- A Nevada property is assessed at 35% of its $600,000 market value. The tax rate is $3.50 per $100. What is the annual property tax?
- A Nevada investor purchases a rental property for $280,000 and wants a 12% annual return. What minimum annual gross income must the property generate?
- A Nevada buyer needs to borrow $320,000. The lender charges 2 points. How much are the points?
- A Nevada commercial building has a NOI of $95,000 and sells at a 6.5% cap rate. What is the sale price?
Practice More Nevada Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Nevada Quiz →