How much is the concession?

[Terrel L. Shields]

Quick problem. Relates somewhat to the Leasehold questions

A renter has been paying $500 a month for 2 years with an option to pay $72,000 for the property and the last 12 mo. rents will be applied towards the sales price. The lease purchase has a 3 year term. So how much is the concession, what is the current (24 months into the term), market value (assuming the sales price is arm's length market transaction)?

What is the Leaseholder's interest, if any?

And what is the effective GRM if the sale goes through.

Ter

 

[Anonymous]

Does the tenant have an option or a right of first refusal? What is the market rent for the property? Is the sales price for the house out of line with comparables?

 

[jtrotta]

Terrel

Once you go thru Walt's question's - Is there a concession :?:

8)

 

[Terrel L. Shields]

My help posed this question to me and after a snappy answer, I have reconsidered. It appears the MV will be about $77K, & the MV was likely about $72k when the deal was done 24± mo. ago. An adjacent dwelling same size sold next door for $77K. Does a concession clearly exist? The rents appear slightly below average (140 GRM is typical) so I could make a case for discounting $50 or so per mo. The rebate merely offsets the normal realtor fees that might have occurred.

 

[Frederick R. Ruffell]

Sounds good Terrell, keep up the good work. How is that for a snappy answer, make sure you use with your help.