Property Valuation
When using the gross rent multiplier (GRM), if a property rents for $1,500/month and comparable properties sell at a GRM of 120, what is the estimated value?
A$150,000
B$180,000✓ Correct
C$270,000
D$360,000
Explanation
Value = Monthly Rent × GRM = $1,500 × 120 = $180,000. The GRM is a quick method to estimate value by multiplying monthly gross rent by a market-derived multiplier.
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