If you are estimating the market value of a property, would a 2,200 SQFT 4br/2ba multifamily be approximately the same value as a 2,200 4/2 single family? I know these are different categories of properties, but what if you can't find recent & nearby comps that have the same SQFT?
I would not say those two properties are comparable. Two 2/1 halves of a multi don't add up to a 4/2 any way I can imagine. Sometimes there just aren't good comps, that's part of the struggle.
If there are no recent and close comps that make sense, they'll slowly go further back in time for sales and farther away for location, until they come up with a match. I've seen write ups with 3-4 year old sales comps on them.
No.... I would not use a multi to compare to your property. That's honestly one of the things that I hate with SFR. Unlike multi where the income decides the price SFR can often be just an estimate of the value. Whenever I don't have good comps I play it WAY safe. They get an embarrassingly low offer.
No, it is not a good comp.
They are sold to a totally different type of byer therefore do not sell at the same rate.
I agree with @Jeremy Pace . In my opinion, the buyer who is looking at a 2/1 Duplex is not the same buyer who is looking for a 4/2 SFR. Generally speaking, I would expect the buyer of the 4/2 to pay more than the duplex buyer, if they were in the same neighborhood and condition, as the buyer pool for the 4/2 is generally larger. Additionally, the duplex is probably going to valued with a lot more attention to the potential rent that the house can bring in.
With that said, I would dig deeper into the past to look at the values of good comps that sold previously. Adjust those prices for the appreciation of real estate in the area you're working in, and you should arrive at a reasonable price for the house. If you still can't find comps, you can broaden the search area, but this is generally not as safe, as the values may differ greatly as you get further away from your subject property.
Sfh Prices = Mostly driven by emotional pricing. ( See SF bay area)
Multi Prices = Mostly driven by potential income.
You say MF. Is the property less than 4 units? If so, from an appraisal standpoint, they would both be evaluated using the sales comparison approach as SFR. Good luck.
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