Comps are all over the place. How to valuate?
The house is in a neighborhood where every street now has at least one million dollar home. This street has two. Builders are coming in tearing down these 1950s houses and rebuilding. The sold comps range from $131 sq. ft (low) to $399 sq. ft (average) to $1000 sq. ft (high). The leased comps run $2200 to $2500/mo for the same age/size as the subject property. The lots are going for $300K average. This home is about 1600 sq. ft, 2/1 double carport, with formal dining, converted garage family room, and den. The home has some wood rotting on the rear of the home (perhaps termites) but otherwise well kept and should be a lipstick rehab for a buy and hold. The seller thinks it would be a great tear down and wants the lot price of $300K. Being a wholesaler, I want to make sure I buy right to be attractive to both rehab/tear down buyers and buy and hold buyers. Please advise on purchase price and selling pricing.