if your client orders a rent schedule after the appraisal is completed, do you go out and take the rental comp pictures or can you just take the pictures out of mls and comment? I know the process with comparable pictures.
If it's an owner occupied house, and that's also the highest and best use, then rent comps are just a formality. I've run into that when the owners moved, and rented it because handling 2 huge house payments is rough. They rent it on a month to month basis to someone who has just moved into the area, and the UW wants rent comps because it is rented... despite 99.9% of the homes are owner occupied. In those cases, the income will not support the value, is given no weight since the highest and best use is not tenant occupied income property.
As Dan said. I mean you will determine your GRM by applying similar rents to similar sales, which will almost always make the GRM and rent similar to your value, if it doesnt then there is a problem somewhere. Besides in most residential areas, the income approach is not paricularly useful.
why are some of you so shocked? I think some of you guys just look for a reason to criticize others questions and their practices as if you yourself have the perfect practice. I understand being concerned about certain things but we must still be able to use sound judgement when faced with practices that are not the norm.
I always take the rental photos and look at the property. Otherwise, how can you adjust the comps to the subject. Also, many times I have found the rental vacant. To me that means it is not a rental comp... it used to be but now it is just another vacant property.
I also charge $475 of a SFR investment property; I lose deals to appraisers that do them for $325 to $375. I wonder how many rental comps they have inspected. It is about Quality of Work.
