Property Valuation
An appraiser determines a subject property's value using the gross rent multiplier (GRM). The property rents for $1,800/month and comparable properties sell for 120 times monthly rent. The estimated value is:
A$196,000
B$216,000✓ Correct
C$225,600
D$259,200
Explanation
GRM method: Value = Monthly Rent × GRM. $1,800 × 120 = $216,000. Using the values given ($1,800), apply the appropriate formula.. The correct answer is $216,000.. This is a common calculation on the Oklahoma real estate exam.
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