Flipper/Rehabber · Baltimore, MD · Member since 2019 · 22 posts · 5 votes
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.
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.
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.
@Eric Lawson it is possible to use a single family property as a comp for an attached/semi attached townhouse however it isn't the best. But are you saying that those single family houses with more sq ft are selling for less than what the townhouse is listed for? If so, assuming they're in similar neighborhoods, I would definitely stay away from that townhouse.
Chris gave you a great answer, and I will add, any property lacking proper like kind comps will be difficult to pin point a value on so proceed with caution in those cases. If you have a difficult time identifying a value due to lack of comps, so will your end buyer and their lender.