Real Estate Math
A property has a gross income of $180,000 per year. The GRM for similar properties is 10.5. What is the estimated property value using the GRM?
A$1,800,000
B$1,890,000✓ Correct
C$1,714,286
D$2,100,000
Explanation
Value using GRM = Gross annual income × GRM = $180,000 × 10.5 = $1,890,000. Using the values given ($180,000), apply the appropriate formula.. The correct answer is $1,890,000.. This is a common calculation on the Washington real estate exam.
Related Washington Real Estate Math Questions
- A buyer purchases a property for $350,000 with a 10% down payment. Two years later, the property is worth $420,000. What is the percentage increase in value?
- A Washington broker takes a listing at $589,000. After 45 days, the seller agrees to reduce the price by 3.5%. What is the new listing price?
- A Washington investor buys a duplex for $480,000. Each unit rents for $1,800/month. What is the annual gross rent multiplier (GRM)?
- A Washington home with 2,400 SF sells for $696,000. Price per square foot is:
- A Washington commercial tenant has a 5-year lease at $4,200/month for the first 2 years, then $4,600/month for years 3–5. What is the total rent over the full lease term?
- A Washington listing sold at $745,000. The broker's 5.5% commission was split 55% listing, 45% co-op. The co-op broker earned:
- A Washington 6-unit apartment has 5 units occupied at $1,500/month and 1 vacant. Monthly rent loss from vacancy is:
- A Washington property has a lot of 150 feet × 200 feet. What is the acreage? (1 acre = 43,560 sq ft)
Practice More Washington Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Washington Quiz →