how is the cap rate figures for properies sold? Is it listing rate or sales rate?

In General Area - Asked by Laura C. - Sep 16, 2010
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Answer(s)

Bill B.
Owner/Investor
Cherry Hill, NJ

Devide the NOI by the sold price and you will get the the cap rate!

Sep 16, 2010
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Boris A.
Broker/Agent
Houston, TX

A cap rate is a the value of a property from the net operating expanses. you will need to find out what is the value of the income after all expanses are deducted and then divide the cap rate to get the price.

Sep 17, 2010
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Gerry V.
Appraiser
Del Mar, CA

Determine the ANNUAL net operating income from property operation before debt service or depreciation expenses. Be sure to also deduct any non-recurring expenses such as recent remodeling but be sure there is a reserve for replacement expense figure Divide the resulting figure (the annual NOI) by the SELLING price for the capitalization rate.

Sep 23, 2010
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Han Widjaja C.
Broker/Agent
San Gabriel, CA

Nicole: sales price, you'll have to calculate the property tax based on sales price, and then figure out your new NOI based on that. easiest way is using excel financial model that automatically recalculate your actual cap based on your final sales price

Oct 6, 2010
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