No Comps... How do would you assess ARV

[Jeremy Mattson]

Hi All, 

I am looking to put an offer in on a duplex and need to determine what my ARV would be. The duplex was built in the 60's and is located on an acre of land in the area's prime school district. Across the street is a new sub-division (built within the last 5 or so years).. All of the SFH houses in that area range from 250-400k. Problem is, there are no near by duplexes to determine what my ARV may end up at. I would assume these SFH's would bring up the value of the duplex, but to what extent?

I plan to rehab the interiors of these units to fit in with their nearby counterpart SFH's. Probably a long shot. But what do you do when it difficult to find comps?

Thanks!

[Stephanie P.]

@Jeremy Mattson

Not to be Debbie Downer, but I'm betting you get hammered on your value.

If you've got all these new beautiful houses in a sparkling subdivision and your house is a duplex built in the 60's, you're not really comparable.  If the only duplexes they can use are similar in condition, style, design and appeal with the only differences being acreage, school systems and a different part of town, an appraiser will use those comps and savage your value.

I hope not, but my experience is they'll give value to the duplexes over new subdivisions.

Stephanie