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Updated over 10 years ago on . Most recent reply

Joe Manning's profile image
Joe Manning's profile image
Joe Manning
  • Real Estate Investor
  • from Brooklyn, New York
  • Member since Dec 30, 2013
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7
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3
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Joe Manning's profile image
Joe Manning's profile image
Joe Manning
  • Real Estate Investor
  • from Brooklyn, New York
  • Member since Dec 30, 2013
Connect
Joe Manning
  • Real Estate Investor
  • Brooklyn, NY
3
Votes |
7
Posts
Real Estate Deal Analysis & Advice

Selling Cost - Industry Underwriting Standard?

Joe Manning
  • Real Estate Investor
  • Brooklyn, NY
Posted

I often see a 2% selling cost subtracted from a residual value in the direct cap or DCF valuation method for commercial deals.  Is this realistic?  2% seems low.  Anyone know how this became a standard - the methodology behind 2%?

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