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Updated over 3 years ago on . Most recent reply
Appraisers include management fee in CAP rate?
Do appraisers automatically include a 10% property management fee despite it being managed by owner or if its possible to secure a lower say 7% management fee? If they do that can result in a drastically lower appraisal due to CAP rate adjustment...anybody with experience with this? Thanks!
Most Popular Reply
Drew Sygit
#2 Managing Your Property Contributor
Property Manager
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#2 Managing Your Property Contributor
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- Royal Oak, MI
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Drew Sygit
#2 Managing Your Property Contributor
Property Manager
Agent
Pro Member
#2 Managing Your Property Contributor
- Property Manager
- Royal Oak, MI
If the appraiser doesn't do it - the lender will!
Lenders are conservative and don't care that you will self-manage. WHo will manage if you get transferred and somehow incapacitated? Lenders want to be covered for those events.
FYI - they will use the local market rate, which may or may not be 10%
- Drew Sygit
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- 248-209-6824
Logical Property Management.
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