Real Estate Math
A NH property's gross annual rent is $54,000. A comparable sale with a gross annual rent of $48,000 sold for $576,000. Using the GRM method, what is the estimated value of the subject property?
A$576,000
B$648,000✓ Correct
C$612,000
D$540,000
Explanation
GRM = Sale price / Gross annual rent = $576,000 / $48,000 = 12. Subject value = GRM × Subject gross annual rent = 12 × $54,000 = $648,000.
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