Would You (An Appraiser) Approve These Comps

Question

I purchased this property: 1312 Appleby Ave, Baltimore, MD 21290

Provided comps for the property: (pic below)

$310,000 1208 Fairfield Ave Baltimore, MD 21209$436,650 1211 Lake Falls Rd Baltimore, MD 21210$439,980 1300 W Lake Ave Baltimore, MD 21210$454,000 1207 Lake Falls Rd Baltimore, MD 21210

Question: The comps on the property worry me a bit because they are mostly across the street in a different, newer community. However, the comps are of older style homes. I’d like a second opinion.

If you were appraising the Appleby Ave house, would you accept these comps for the Appleby Ave property?

Steve Morris · Answer

If you were appraising the Appleby Ave house, would you accept these comps for the Appleby Ave property?

If those were the "best" (as in close in location, type, condition, age, size), probably.  It's a guessing game since you're trying to set a value on something without selling it (the ultimate arbiter of value).

What the appraiser should do is look at each and then do adjusts (eg property is new and yours is 20 years old, so -$20K) on each.

Ayannah Buford · Answer

Hmmm...I think you may have answered my question. I did an average of the properties across the street and substracted 30%. I got $310K which is the amount of the Fairfield Ave house. Thank you @Wayne Brooks!!! :)

Wayne Brooks · Answer

Location and neighborhood would relate to Fairfield Ave. We couldn’t know enough about theses neighborhoods to know if they are comparable. Many times a different neighborhood just across a street can be 30% higher or lower for otherwise comparable properties.