How to valuate a property with few comps or demo the home.
So I am working the number to place my first offer on a house to wholesale. 2/1, 972sqft, 1.99acres, built 1948 and surrounded by solds of superior homes from $120-236K. Asking price 80K with one failed deal as previous buyer failed to show up on the last closing. Owner died and sons trying to sell it. Only problem I am having with creating a value is that homes like this one have not sold in the area yet are under .5 acres compared to most of the other homes that are either new construction or 2+ more bedrooms and baths. Also, the home is in such poor condition the seller said it should torn down and rebuilt. How do you valuate a property where the majority of the value is in the land as the house structure takes away value because of it's condition? How do you valuate a home where rehab cost are more than the value of the structure or using demo cost. Where do I get demolition and rebuilding costs? Any help will work. Thanks