Appropriate Discount for Multiple Properties

[Delta Charlie]

Have a unique situation in Maryland, four contiguous, detached single family properties that have to be sold together? Three are waterfront and one is inland with two houses. Assessed values average approximately $550K, each. Currently used as AirBNB(s).

Any thoughts on whether or not a discount is needed and, if so, how much?

Thanks,

 

[shrubberyvaluation]

Have a unique situation in Maryland, four contiguous, detached single family properties that have to be sold together? Three are waterfront and one is inland with two houses. Assessed values average approximately $550K, each. Currently used as AirBNB(s).

Any thoughts on whether or not a discount is needed and, if so, how much?

Thanks,

I wouldn't unless some are similar and might use same comps.

 

[BRCJR]

Have a unique situation in Maryland, four contiguous, detached single family properties that have to be sold together? Three are waterfront and one is inland with two houses. Assessed values average approximately $550K, each. Currently used as AirBNB(s).

Any thoughts on whether or not a discount is needed and, if so, how much?

Thanks,

You asking about bulk sales discount of fee discount?

 

[CGinMN]

What is the highest and best use? Are they likely to be sold together or individually?

Anecdotally, I am seeing lots of STRs are coming on the market. Ominous sign?

 

[Delta Charlie]

You asking about bulk sales discount of fee discount?

Yes, I am speaking of a bulk sale of four contiguous single family properties; three of which are waterfront.

 

[Tom D]

if the same appraisal time four, i would discount the last 3. that is only if they are basically clones. i have discounted 50% when it was too easy. also depends on if this is a good client who treats you well. public relations.

 

[J Grant]

Have a unique situation in Maryland, four contiguous, detached single family properties that have to be sold together? Three are waterfront and one is inland with two houses. Assessed values average approximately $550K, each. Currently used as AirBNB(s).

Any thoughts on whether or not a discount is needed and, if so, how much?

Thanks,

Why do they "have to be sold together?"
It sounds more like it a client-imposed assignment condition that they be sold together as a bulk sale, correct?

And there is also the problem of they are being presently used for air bnb use, but do most typical buyers look to buy air bnb rental friendly properties? Or would most buyers buy these houses in bulk, then look to split them up to get more profit individually? Or buy them to rent them out on an annual basis? It is possible that all three of those uses could appeal to the buyer pool, who would like be comprised of investors, and investors usually expect a discount.

How much of of a discount...would take a lot of research, talking to RE agents familiar with the market etc.
It might help to develop a separate value for each property if sold individually to help get to the bulk sale discount.

 

[Zephyr999]

Yes, I am speaking of a bulk sale of four contiguous single family properties; three of which are waterfront.

Find bulk sale comps and see what the margin is.

Bulk buyers differ from a family home purchaser.

 

[Artemis Fowl]

if the same appraisal time four, i would discount the last 3. that is only if they are basically clones. i have discounted 50% when it was too easy. also depends on if this is a good client who treats you well. public relations.

Don't think he's asking about HIS fee...

 

[alebrewer]

It's always been my take that the amount of discount is inversely related to the amount of product on the market. IOW - if these will be the only 3 waterfront properties on the market, they will be competing strongly against each other, and may require some discount. If there is ample product on the market, I wouldn't think 3 properties would effectively induce any kind of discount requirement.