Question

A property is being appraised using the gross rent multiplier. A comparable property that rents for $150 per month recently sold for $24,000. If the property being appraised will rent for $165 per month, the sales price would be

Answer 1

The sales price of the appraised property is $26,400

Step-by-step explanation:

The sales price of of the appraised property can be expressed as;

SA=(A/C)×SC

where;

SA=selling price of the appraised property

A=appraised rent per month

C=comparable rent per month

SC=selling price of the comparable property

In our case;

SA=unknown

A=$165 per month

C=$150 per month

SC=$24,000

replacing;

SA=(165/150)×24,000=$26,400

The sales price of the appraised property is $26,400