STR Purchase Price Valuation

[Jonathan Weaver]

Good morning BP. I am evaluating a STR in a non-established STR market. Close proximity to a few vacation spots, but nothing like Smoky Mountain area. Property is being sold as "STR Business" (website, branding etc) at about 3x what local comps for same size and bedroom count residential homes are going for.

I am working with seller realtor to get historical property performance records. It has been an STR for 5-10 years at this point.

QUESTION:  When seeking a vacation home / second home mortgage how do the appraiser evaluate fair market value for this type of property? 

I want to come up with an offer that is fair and will not have an issue with getting finance for. 

Thanks

Jon

[Avery Carl]

It's a residential asset, it will be appraised based on closed residential comps. So it's very unlikely that it's going to hit value when it gets appraised.