Realty Rates.com for Real?

[dgdfl09]

Does anyone have an opinion, good or bad, on the cap rate info from Realty Rates.com? I've seen several publications in which their cap rates seem unrealistically high. This info comes from Florida and I believe the person who puts it together is a developer. I have also emailed this company several times to get info as to where they get there data. I have never gotten a response.

 

[Michigan CG]

Does anyone have an opinion, good or bad, on the cap rate info from Realty Rates.com? I've seen several publications in which their cap rates seem unrealistically high. This info comes from Florida and I believe the person who puts it together is a developer. I have also emailed this company several times to get info as to where they get there data. I have never gotten a response.

It is another source of information. It is not something you can hang your hat on. You state you think the rates are high.....I think they might be a little low.

 

[Sheikh Yerbouti]

Their rates run on the high side where I am. Also, I have seen some wierd stuff in their market area surveys. Like a drop in subdivision discount rates of several hundred basis points in one quarter in one of the worst residential markets in the US.

It's like CoStar or anything else. Use it as a starting point and then build on it with your own investigation.

 

[BobfromSalem]

I agree about "not hanging your hat"

It is another source of information. It is not something you can hang your hat on. You state you think the rates are high.....I think they might be a little low.

As long as you do other methods of analyzing cap rates (sales, debt coverage ratio, other surveys, etc.), then it's OK to use it...but definitely with caution.

 

[Bill_FL]

I believe, if you read the detail, its not a report of experiences, but a report of expectations.

 

[PL1957]

I believe, if you read the detail, its not a report of experiences, but a report of expectations.

All Investor Surveys report expectations. The only survey that I've seen that reports "results" is the NCREIF survey, and even that relies on appraised values instead of actual sale transactions.

 

[Howard Klahr]

a report of expectations.

Is that not what value is based on?

 

[Bill_FL]

Is that not what value is based on?

I am just making sure the OP understands that these are not from verified sales and the rates found from the sales. There are many people who think these surveys are based on results from the previous quarter, not expectations.

 

[Kali the Boston Terrier]

I am just making sure the OP understands that these are not from verified sales and the rates found from the sales. There are many people who think these surveys are based on results from the previous quarter, not expectations.

...hence market survey

 

[Kathleen Hayes]

I find the rates to be useful, although used for support. I talked to the owner a year back and he was very helpful. To be honest, he sounded like a worn out appraiser sick of the valuation world; so your phone call may have sounded like a typical underwriter to him and didn't return your call....I am sure since you know everything like all fellow appraisers do....all the information in the world used to develop his rates would not change your opinion. IT IS A SOURCE......................high, low, doesn't matter.