The outside Condo Comp

[SANDY]

The principle of substitution does not require an exact duplicate. JGrant nailed this one. The market for one or even numerous buyers may only include the subject condo development but that does not mean the subject development is the market for all other potential buyers.

 

[Tom Foster]

Well, I just got back from the appraisal. Turns out that I have 5 current model matches of the subject in the project.

The best outside condo was very plain ( comp roof, boxy design, no trim etc. )

Now the subject’s project has a nice tile roofs, grass areas, trees, just better all around.

It’s like trying to figure out what I can sell my Mercedes for by looking at what a Kia just sold for !!!! ( they both have 4 doors, an engine and a steering wheel right ?

But I’m bring in an outside comp !!! Why ….. I want to get paid !!!

 

[sandpiperapp]

does not mean the subject development is the market for all other potential buyers.

Absolutely. What I am saying is that in an existing mature development that has a sales history, the arm's length transactions within the subject community are the best indicators of value.

Even if you believe that an outside comp is necessary, do you give that comp more weight than sales inside the community? Of course not.

I do not understand why you would treat a mature condo community differently than you would a single family community. Buyers typically look in more than one SFR community when shopping, but when we appraise, if we have arm's length transactions within the community, we use those and do not add a comp outside the community.

 

[residentialguy]

The principle of substitution does not require an exact duplicate. JGrant nailed this one. The market for one or even numerous buyers may only include the subject condo development but that does not mean the subject development is the market for all other potential buyers.

The principle of substitution are properties that are equally desireable.

Tom, if they aren't comps...they shouldn't be used.

 

[sandpiperapp]

Well, I just got back from the appraisal. Turns out that I have 5 current model matches of the subject in the project.

The best outside condo was very plain ( comp roof, boxy design, no trim etc. )

Now the subject’s project has a nice tile roofs, grass areas, trees, just better all around.

It’s like trying to figure out what I can sell my Mercedes for by looking at what a Kia just sold for !!!! ( they both have 4 doors, an engine and a steering wheel right ?

But I’m bring in an outside comp !!! Why ….. I want to get paid !!!

Put it in the report, make good adjustments, even if they do not follow guidelines and explain. I usually add a comment that all weight was given to the inside sales.

 

[J Grant]

why would you use such a dis similar comp? There are no better comps in buildings like the subject around, even if a bit further away or older?

 

[VegasWayne]

With five model matches you will probably be stipped for not bracketing the GLA.

 

[form1025]

Like Lee said,if you have sufficient available comps in the subject's project,you need look no further. Who's guideline/assignment condition is that anyway,I know its not Fannies.

 

[Terraform]

With five model matches you will probably be stipped for not bracketing the GLA.

Hah! m2:

If comparable projects are available within your defined market area I would select 1 unit from outside of the comparable project even if not specifically requested by the client to do so. In my experience a client has never specifically requested a comp from outside of a well established condo project with good resale activity, the request is just odd, I would explain there request for irrelevant market data diminishes the reliability of the report due to the following reasons……

 

[Lee Lansford]

...

But I’m bring in an outside comp !!! Why ….. I want to get paid !!!

What are the words--exactly--from the client that 'requires' you to include a sale from outside of the subject's project?