Question

An appraiser has done comparables on four properties. comp 1 has a sales price of $97,500, a monthly rent of $550 and a calculated grm of 177. comp 2 has a sales price of $105,200, a monthly rent of $650 and a calculated grm of 162. comp 3 has a sales price of $96,000, a monthly rent of $500 and a calculated grm of 192. comp 4 has a sales price of $101,500, a monthly rent of $600 and a calculated grm of 169. if the appraiser determined the grm of the subject property to be 169, and the monthly rent to be $625, then what would the estimated value of the home be

Answer 1

$1,267,500

To calculate estimated value using GRM (gross rent multiplier) you need to take the annual rental income times the GRM.

Monthly income= $625 so annual income= $625*12 months=

$7,500 annual * 169 GRM= 1,267,500