Realty Rates

[leasedfee]

Didn't AI try to do that several years ago? The biggest argument against a national system is mostly all we have to sell is our knowledge. There are too many free riders who will never contribute anything to such a data base. And then there's the quality issue. . . .

I think they tried something in the early 2000s. There'd have to be a quid pro quo credit system. And you'd couldn't just say "Um, the cap was 7%" but would have to demonstrate (i.e., data input revenue and expense lines) how the 7% was arrived at, as well as a standardized format to get to a uniform cap rate.

CB, your argument is a very strong one no doubt. I guess that the counter argument is that commercial skippies don't extract cap rates -- some of them don't even know what that means -- much less derive a slightly realistic NOI. We're already being underbid by them in the RIMsified world ...... Why would they take time to contribute data to have the credits to get data when they can whimsically type "Korpacz and CoStar reports ..... "? Ta Da. Done.

On an autobiographical note,two decades ago I caught myself being territorial in withholding info to a colleague at a boring gov't office job. Afterwhich I immediately decided that was not the professional I aspired to be and have tried to be the opposite giving information, knowledge, and advice freely. I've found that it has always been reciprocated.

 

[CBBoston]

I guess you can blame RIMs in that more people get to bid on the same job but I'm not clear that RIMs has had the same impact as AMCs on the residential side. Fees began to suck before RIMs came on the scene. I don't disagree that using primary data is far better than data from secondary sources. However given the general level of fees, one can't spend too much time trying to ferret out primary data. Unless of course appraisal is a hobby. I mean half the time I can't even get decent data from owners of props being appraised. And just as often I get lies. Then there are owners who are so disorganized they practically give you a shopping bag full of "stuff." Or my favorite their tax returns. All I can say is you must work with property owners who are way more professional than I do. I'm envious.

 

[kiritf]

I use Realty Rates in addition to Korpacz. I really like Realty Rates and for the bang for the buck it's great. It's all survey data. I've been using them for about 5 years. I would drop Korpacz possibly, but that's a smaller expense through AI and they have some specialty property types that RR doesn't have.

 

[Terrel L. Shields]

guess you can blame RIMs in that more people get to bid on the same job but I'm not clear that RIMs has had the same impact as AMCs on the residential side. Fees began to suck before RIMs came on the scene.

I waste more time answering RIMS bids and I get less assignments even when bidding fees I routinely got for years. So the short answer is yes, RIMS reduces fees. And as a consequence I resolved to fire the banks who require its use. I am working for lawyers now. What does it say about this business when lawyers are much better clients than bankers?

The problem with the AMC and RIMS is they are built upon a reverse Dutch Auction system of biddings that rewards the fastest Turn Time and the lowest Fee in opposition to the clear mandate of Dodd-Frank and bank regs that the appraiser is chosen based on their skills for a given project.

I don't mind doing "the hard ones" as long as I am compensated for it. I am not going to do a hard project for a cheap price. Once I figured out one of my bank clients only let me bid on the absolutely most difficult jobs and only awarded them when I was the only bidder...goodbye.

 

[Michael P Jacobs MAI]

Thanks!

...if you read the fine print RealtyRates doesn't subtract for reserves which may trim 50 or 100 BP off.

Doh! That's why. I missed the fine print... good to know.

 

[GregoryK]

Leased Fee and CB, is not 10% the definition of a cap rate? LOL!!!

Signed Skippy

 

[Michael P Jacobs MAI]

...is not 10% the definition of a cap rate? LOL!!!

8% is the new 10% here in SE Florida.