Area Rental Rates

[Joseph44 0]

Hi everyone,

Haven't been here for awhile. Question: does anybody know were I might pickup a seller disclosure form? Also, when doing home comps I use Home Radar all I want to know is what do you compare from that site to get in the comp in the ball park? Thanks all and have a good day tomorrow!!

[Kimberly 0]

Does any body know were I might picup seller disclosure form?

If it is required by law in your state, you should be able to get a copy from the real state commission in your state. Try their website.

 

Replying to Area Rental Rates

Also when doing home comps I use home radar all I want to know is what do you compare from that site to get in the the comp in the ball park?

Which comp are you needing help with? Current Market Values (sales price) or Current Rental Rates

[Guest frank]

[quote name='Kimberly' date='Mar 6 2005, 11:51 A

Does any body know were I might picup seller disclosure form?

If it is required by law in your state, you should be able to get a copy from the real state commission in your state. Try their website.

 

Replying to Area Rental Rates

Also when doing home comps I use home radar all I want to know is what do you compare from that site to get in the the comp in the ball park?

Which comp are you needing help with? Current Market Values (sales price) or Current Rental Rates

<{POST_SNAPBACK}>

 

Hi Kimberly<

Thanks for your responce I was looking for help for both the above.But

Kim while I have you here let me ask you this:A few sellers I've talked to about

a lease/option were pretty savvy about l/o and they ask who pays my monthly

payments if t/b doesn't and without letting the cat all the way out of the bag I said

I will they replie you how do I know you can.Kim how would you handle that question.If I tell them to much they might want part or all option consideration.

Thank again for your help Kim and have a good day!!

[Kimberly 0]

Figuring out Rental Rates -- (1) Look in the classifieds for similar houses in the same general area to find out what folks are asking in rent. (2) Call older classified ads to find out what the properties actually rented for. (3) Call a rental service and ask questions as if you were the owner.

 

Calculating Current Market Value -- After you've got the comps (similar properties in the same area sold within the last 6 months), calculate the price per square foot, then multiply the price per square foot by the the square footage of your target property. If one of the comps is way high or low, I'd recommend you don't use that one.

 

A few sellers I've talked to about a lease/option were pretty savvy about l/o and they ask who pays my monthly payments if t/b doesn't and without letting the cat all the way out of the bag I said I will they replie you how do I know you can.Kim how would you handle that question.If I tell them to much they might want part or all option consideration.

Cooperative Assignments (assigning your position to the tenant/buyer) -- you would point out that the t/b will have a significant financial interest in paying on time -- Option Consideration and Rent Credits. Large Rent Credits are a great incentive. Also, point out that they get to approve your t/b.

 

Sandwich Leases -- I would not recomend doing these until you have a reserve fund to handle such possibilities. You would need to set aside part or all of the Option Consideration so that you could handle your responsibilities in the deal should the t/b default. (When setting aside funds, consider how long it will take for the eviction process as well as finding new t/bs.)

 

Doing a good job screening potential t/bs is the best way to avoid problems, but there are no guarantees.

[Joseph44 0]

Thanks Kimberly,

Thanks Kim but you lost me on the comps how do I find price

pr/sq foot?Then I multiply homes sq /ft by that number.One more thing Kim

do I multiply what is under roof or the complete sq/footage?Thanks for your

help I appreciate it.Have a good day tomorrow!!

[JCannon 0]

Add all of your comp properties' per square foot together, divide that total by the number of comps you used, multiply that total by the square footage of your subject property. That will give you a good estimate of the homes current value.

[Kimberly 0]

Kim but you lost me on the comps how do I find price pr/sq foot? Then I multiply homes sq /ft by that number.

<{POST_SNAPBACK}>

Here's an example with three imaginary comps:

123 Main -- 1250 sf -- $112,500

423 Next Street -- 1322 sf -- $116,000

789 Other Avenue -- 1275 sf -- $114,750

 

Determine price per square foot for each comp:

Price divided by square feet = price per sf

 

123 Main: $112,500 / 1250 = $90.00 per sf

423 Next Street: $116,000 / 1322 = $87.75 per sf

789 Other Avenue: $114,750 / 1275 = $90.00 per sf

 

Next, average the price per square foot of all the comps by adding them all together and dividing by the number of comps.

 

$90.00 + $87.75 + $90.00 = $267.75

 

$267.75 / 3 = $89.25 average price per square foot

 

Then you take the square footage of your target property and multiply that by your average price per square foot.

 

To finish the example, assume the square footage of the target property was 1300sf.

1300 X $89.25 = $116,025

 

You'd round down to $116,000. If you've got good comps -- within the last 6 months, similar construction, same area preferably same neighborhood -- you've got a relatively good idea of what the house is currently worth.

 

One more thing Kim do I multiply what is under roof or the complete sq/footage?

You are using the living space for your calculations. Total would include the garage. I get the square footage from the county assessor.

[-Tony- 0]

I will they replie you how do I know you can.Kim how would you handle that question.If I tell them to much they might want part or all option consideration.

 

You might try this approach.

 

Well Mr. home owner as you know I don't get paid until our t/b purchases the property so, if I do not to pay the mtg I will be out any time and money I have invested in the property i.e. maint and marketing. So to me it just doesn't make much biz sense to not make your payments. This makes sense to you right.