Multi Property Sales

When a buyer purchases more than one piece of property at once, the purchase is recorded as a multi-property sale. Multi-property sales may take a variety of forms, such as a buyer purchasing a single-family home and an adjoining lot to create a single, larger property, or purchasing multiple units in one condominium building.

Since properties of different values can be purchased under a single transaction, multi-property sales may not provide a good apples-to-apples benchmark for property values when conducting a comparative market analysis.

Capitalization Rate (Cap Rate)

Capitalization Rate (Cap Rate)
A ratio used to estimate the return on investment of a real estate investment property, like an apartment building. It is calculated by dividing the income a property will generate in a given year (after fixed and variable costs) by the purchase price or current value of the property. For example, an apartment building that recently sold for $1,000,000 and generates $100,000 in income after expenses has a capitalization rate of 10%.

Renovate or Relocate? 5 Key Questions to Ask

With baby no. 2 on the way, Jonathan and Andrea Hildebrandt had to face an expensive reality. They needed more room.

Their home had only two bedrooms, and nowhere for their 2-year-old to play without waking up her future little brother. Moving didn't seem viable. The family loved their Queen Anne neighborhood in Seattle, and given that home prices had fallen 20% since they had bought four years earlier in 2007, they doubted they would recoup the $530,000 they paid. So they started talking seriously with builders about refinishing their basement or adding a second floor.

Those conversations came to an abrupt halt, though, when the Hildebrandts found their perfect house, a $618,000 three-bedroom just blocks away.