How to get good comps (Chapel Hill, NC)

Question

I'm looking to sell a 3/1 property with a walkout basement apartment (1/1) in a top location right next to the University.  Amazingly, it is apparently nearly impossible to get decent comps for this so I'm not sure how to approach figuring out whether to outright sell it (and for what price), fix it up as a rental, or market it as a knockdown for the land.  Any thoughts?

Benjamin Carver · Answer

Andrew, comps can be hard in Chapel Hill with less volume to go off of or in your case maybe a specific floorplan layout. I had the exact same issue on my split level house hack. So any appraiser will tell you to prioritize location, usually 1-2 miles max and ideally under 3-6 months. But I often have to go to 3 miles and out to a year. And sometimes that isn't enough. I'd make sure your comps are very similar in layout and condition, similar updates, etc. And then adjust for the growth in prices across time OR/AND adjust for price difference across distance if going a little further out than ideal. A good agent should be able to do this alongside you. And SOMETIMES it's more of an art than a science and becomes less about comps and more about what it's worth to you, do the numbers make sense, and will it appraise.

Emily Weems · Answer

You'd have to do some homework on market demographics & what highest & best use would be for the property. What is the zoning, what could be built there & would that project be worth the cost of demo of the home if you sold as land. If it's likely going to be used as a rental, what is the cash flow on it & what would the likely sale priced be based on the income. If there are owner occupants primarily buying in the area, what would it be worth to them as is or renovated?

What's your goal? Would you want to spend the time on it to renovate?

These are just a few starting places that could help you sort through your plans!

Are you currently working with an agent? If so, they should be able to walk you through some of these scenarios. If not, DM me.

Emily Weems

Keller Williams United

Ginther Group Network