Should I purchase a property with no comps in the area

[Eric Lawson]

I came across a property that is Bank owned as a possible flip and the bank is asking for $63,000 unfortunately there are no comparables in the area to this property. In the last 6 to 12 months properties that match the criteria for this home which is a 3/1.5 townhouse 1500sq only comps are single-family homes with a more square footage than this property. should stay away from this property Because the comps on the area are all selling or have sold for $60,000 or less.

[Chris Mason]

It kind of paints the picture of the bank's software not knowing the difference between an attached townhouse and a detached SFR, so they priced it wrong.

I can't guarantee an appraisal outcome, but I'm guessing the appraisal will come in for less, at which point you counter the bank at the appraised value, providing the appraisal as backup, and the bank either takes it or doesn't and you walk. Coin toss how it could play out.

The price to play is an appraisal fee.