Practice & MathQuestion 85 of 100
A property has a gross annual rent of $30,000 and a gross rent multiplier of 9. What is the indicated value?
a.$270,000
b.$210,000
c.$300,000
d.$333,000
Explanation
The gross rent multiplier method multiplies gross rent by the GRM: $30,000 x 9 = $270,000. The GRM is a quick screening tool derived from comparable sales. It does not account for expenses, unlike the full income approach.
Practice all 100 questions free — no signup required.
Related questions on this topic
- The appraisal approach that estimates value by comparing recently sold similar properties is the:
- The appraisal approach most appropriate for valuing an income-producing apartment building is the:
- In the cost approach, the appraiser estimates value by:
- A parcel of land measures 200 feet by 300 feet. How many square feet does it contain?
- Approximately how many acres is a parcel containing 87,120 square feet?
- A home sells for $320,000 and the total commission rate is 6%. What is the total commission?
Last reviewed: · editorial process
PrepPass Editorial Team · Verified against New York Real Estate Salesperson Licensing Exam · How we review