Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 9 years ago on . Most recent reply

User Stats

9
Posts
3
Votes
Lori Marra
  • Landlord
  • Rochester, NY
3
Votes |
9
Posts

How can I find the cap rate for an area?

Lori Marra
  • Landlord
  • Rochester, NY
Posted

I'm thinking about selling one of my properties on my own and I'm not a real estate agent. How can I find the cap rate for my area? Is there a way for me to get comps and figure it out for myself? I'm finding it impossible to find the area cap rate without being a real estate agent. I know my NOI and have set a price with a cap rate, but I'd really like to know what the cap rate for my zip code/area is on this rental. Thanks in advance for any help.

Lori

Most Popular Reply

User Stats

21,918
Posts
12,876
Votes
Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
12,876
Votes |
21,918
Posts
Bill Gulley#3 Guru, Book, & Course Reviews Contributor
  • Investor, Entrepreneur, Educator
  • Springfield, MO
Replied

Lori, really not possible, a market cap rate is only used by an appraiser as a rate generally accepted by other investors, which is nothing more than an educated guess of an opinion as actual cap rates are historic and only applicable to each unique investor. The only reason appraisers must go there isv to estimate the income approach used with the market and cost approach to value. 

You cap rate will never be the same as a new buyer's cap rate. 

Your actual cap rate is an indication of what others may accept, how happy were you with your earnings? If you weren't happy, might consider a lower price. 

Generally, look to the market of other sales, in some areas these are reported for tax purposes. It shouldn't be hard to find a Realtor to provide certain services for a small fee. 

Don't price your property to any cap rate alone. Good luck :) 

Loading replies...