• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

How much is the concession?

Status
Not open for further replies.

Terrel L. Shields

Thread Starter
Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
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
 
A

Anonymous

Guest
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?
 

Terrel L. Shields

Thread Starter
Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
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

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
Sounds good Terrell, keep up the good work. How is that for a snappy answer, make sure you use with your help.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks