Form 1007 Sources for General Public Info

[MoistMitten]

Hello,

I understand that the form uses comps from other sources. Should these sources be active rentals or just a listing thats active? I would think that the comps would be similar to comps for sales meaning its a completed purchase or a rented out house instead of a house for rent. Is that the case or do I just look at what others are renting for with a similar bed/bath/quality?

Please let me know!

 

[Fernando]

Hello,

I understand that the form uses comps from other sources. Should these sources be active rentals or just a listing thats active? I would think that the comps would be similar to comps for sales meaning its a completed purchase or a rented out house instead of a house for rent. Is that the case or do I just look at what others are renting for with a similar bed/bath/quality?

Please let me know!

Best rental comps are most current. If not available, I get most similar rentals within past 6 months and some current active/pending listings to reflect current market.

 

[MoistMitten]

Best rental comps are most current. If not available, I get most similar rentals within past 6 months and some current active/pending listings to reflect current market.

Understood, but is a house that is listed for rent considered a comp since its not currently rented out? I know you cant have active listings as comps for a standard appraisal so I thought it might be the same with rent rates and the 1007.

 

[Surf Cat]

You need "closed" comps that are actually rented. You can't base your opinion of what the subject will rent for on just active listings.

 

[Fernando]

You need "closed" comps that are actually rented. You can't base your opinion of what the subject will rent for on just active listings.

A good appraiser looks at all information including closed and active listings. I consider both in my 1007 and never had a problem.
Depending on how long active rental been on market, you can tell if the asking rent is over market.

 

[MoistMitten]

You need "closed" comps that are actually rented. You can't base your opinion of what the subject will rent for on just active listings.

Is there any services that I could use to find these closed deals? I do have access to the MLS so my situation would be different than most. In my areas leases are not really available in the specific city I have a house in.

 

[Terrel L. Shields]

Is there any services that I could use to find these closed deals?

Zillow can be searched for sales. They give 'guessimates' for rents. But rents are generally going to be a contact to the owner or occupant.
So - you can often get the Realtor's name and contact information of any sale. Narrow the price range to what your subject is and try this

 

[sputnam]

What is your goal? Purpose? Are you considering what rent to ask for a place you own or looking for a place to rent? If so, remember that the asking rent (or price) is a starting point for negotiations. There really is no need for anything more precise than a pretty good idea. If you are trying to estimate and capitalize the market rent for and appraisal, then you use the best data that is available. That could include in place leases and/or offerings.

 

[MoistMitten]

What is your goal? Purpose? Are you considering what rent to ask for a place you own or looking for a place to rent? If so, remember that the asking rent (or price) is a starting point for negotiations. There really is no need for anything more precise than a pretty good idea. If you are trying to estimate and capitalize the market rent for and appraisal, then you use the best data that is available. That could include in place leases and/or offerings.

To be able to get a more accurate assessment than only going based on current rental listings. In my area its anywhere from 1600-4000 depending on the house so thats a bit too big of a spread.

 

[Fernando]

To be able to get a more accurate assessment than only going based on current rental listings. In my area its anywhere from 1600-4000 depending on the house so thats a bit too big of a spread.

Look at your competition in the market and how long the listed rentals been on the market. Put yourself as a prospective objective tenant.
Each rental is unique and each renter has own desire what they want.