1004MC to describe Rental Market ?

[Dublin ohio]

Well, you probably won't believe it, but the assignment was [exclusivey] to determine market rent for the subject property as follow-up to the "original" market value appraisal of the property about 1 month prior, by a different appraiser.

No reason not to believe you, but how can you provide a "market" rent with no supporting market data

 

[ZZGAMAZZ]

No reason not to believe you, but how can you provide a "market" rent with no supporting market data

That's a cheap shot you just took using the English language in your favor. However, it's such an effective punch in the gut that I'm unable to respond. Tell you what, that's another advantage of the AF. I appreciate your comment.

 

[Dublin ohio]

That's a cheap shot you just took using the English language in your favor. However, it's such an effective punch in the gut that I'm unable to respond. Tell you what, that's another advantage of the AF. I appreciate your comment.

WTF are you talking about, it was a simple question Why can't you explain yourself.

 

[alebrewer]

i built one in 12 minutes.

I betcha I could throw that pigskin over those mountains!

 

[J Grant]

JG, I appreciate your perspective but wouldn't you think that a form would be available to report 12-month rental activity, presumably similar to the 1004MC because the format already exists.

Nobody is asking for it so I have never provided it in 25 years.

 

[J Grant]

I have never had a client ask about rental activity over the past 12 months - providing detailed sr a chart. It is only of interest to the appraiser if older dated rents we use as comps are higher or lower than newer ones, and that is apparent just from pulling a few rental comps. It is always better to use more recently rented properties, but that is not always possible. Just like sales, rental lease rates can also vary between properties and not always for a clear reason. We can give a summary of market conditions for rents, and if the past activity is relevant, we can include it in our analysis.

People should take more time understanding their markets and talking to agents and landlords rather than so much time making charts and looking at statistics.

" Demand has fallen for rents because X corporation closed, or demand has risen for rents blue X option open dreary" makes a lot more sense to a reader than lines or graphs on a chart with the appraiser clueless about why, or including data that is not relevant and can be misleading.

 

[alebrewer]

I personally think rental analysis trending could be a very meaningful methodology for studying market trends. If market rents are directly correlated to market value (and we know they are as one formula for MV is MV = R * GRM. So that, as R increases, MV increases in proportion with the rate of increase of R (and vice-versa). Turns out, modeling rents produces results pretty much in line with OO trend analysis...



More interesting question would be: what happens when the rental trend diverges from the MV trend. What does that mean if the R trend diverges positively from the MV trend? Or vice-versa? Rents can be leading indicators WRT MV, but could also highlight short term investment opportunities...

 

[ZZGAMAZZ]

WTF are you talking about, it was a simple question Why can't you explain yourself.

More than happy to do so soon as possible, including stips from the Market Analysis and SCA addendums

I have never had a client ask about rental activity over the past 12 months - providing detailed sr a chart. It is only of interest to the appraiser if older dated rents we use as comps are higher or lower than newer ones, and that is apparent just from pulling a few rental comps. It is always better to use more recently rented properties, but that is not always possible. Just like sales, rental lease rates can also vary between properties and not always for a clear reason. We can give a summary of market conditions for rents, and if the past activity is relevant, we can include it in our analysis.

People should take more time understanding their markets and talking to agents and landlords rather than so much time making charts and looking at statistics.

" Demand has fallen for rents because X corporation closed, or demand has risen for rents blue X option open dreary" makes a lot more sense to a reader than lines or graphs on a chart with the appraiser clueless about why, or including data that is not relevant and can be misleading.

J.G. unsure that I agree with your comment "... not always for a good reason" any more so than an oddball sale might be odd, although sufficient due diligence usually provides 95% of every anomaly.

 

[J Grant]

More than happy to do so soon as possible, including stips from the Market Analysis and SCA addendums

J.G. unsure that I agree with your comment "... not always for a good reason" any more so than an oddball sale might be odd, although sufficient due diligence usually provides 95% of every anomaly.

Substitute for any mathematical logical reason - some units rent higher or lower per the landlord and tenant negotiation and need just as some properties sell higher or lower. Trying to make them all line up perfectly introduces an artificial element of precision the market lacks.

 

[ZZGAMAZZ]

Nobody is asking for it so I have never provided it in 25 years.

More than happy to do so soon as possible, including stips from the Market Analysis and SCA addendums

J.G. unsure that I agree with your comment "... not always for a good reason" any more so than an oddball sale might be odd, although sufficient due diligence usually provides 95% of every anomaly.

Dublin, but i dont understand your perspective that implies the analysis and rental adjustments I applied wete faulty, the scenario being ripe for an OV that exceeded adjusted as well as unadjusted vales the former by pennies but the latter by about $35,000 per month to most of the 9 rental comps.