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IrinaK [193]
2 years ago
15

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
Business
1 answer:
Helga [31]2 years ago
3 0

Answer:

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

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

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