Property Valuation
A New Jersey property has a gross annual rent of $84,000. If the market gross rent multiplier (GRM) is 11, what is the estimated property value?
A$756,000
B$924,000✓ Correct
C$7,636
D$1,008,000
Explanation
Value = GRM × Gross Annual Rent = 11 × $84,000 = $924,000. The GRM method provides a quick value estimate by multiplying the gross rent by the prevailing market multiplier derived from comparable sales.
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