Sales as rental comps?

[Jade M. Hopkins]

Thank you, But that's MR. Hopkins! Don't worry, happens every day.

 

[JSmith43]

If you are working in a urban area, so your subject is surrounded by rental units throughout the neighborhood, your answers and all your rental data are sitting there for the taking. It just needs a person willing to work to get it. I made up a tenant interview form and I go door knocking. I drive the area just to spot similar rentals to my subject, I get out and interview tenants. You do not need the same number of units per building, just similar units in any building. Even one tenant only in a fourplex giving a successful interview that can be used for rental data for a subject duplex is gold! Yes, it can take a couple of hours. But I have also been done in half an hour. I have found it's rather fun myself and I am generally very well received by tenants. Once I have even four successful interviews from comparable unit properties (I often try to get 8 or so) I can now use this with, and compare against, MLS reported data.

Do you get them to sign a sworn statement while you're at it?

Pretty thorough, indeed. And, if that were standard practice it would be nice if the appraisers got carry permits, arguably, a deductible business expense along with range time.

How about beng this thorough in some sample areas and see if one could develop a predictable MLS data BS adjustment factor? Then, all you'd have to do is calibration interviews every few years

 

[Joker]

Using 3 sales for the sales comparison, using those same sales for developing the market rents, and then the same sales for developing a GRM.

Like you've never done it in Nocompland in Nodata County. Three sales (or samples) is rarely enough for any type of market data.