- Dec 9, 2003
- Professional Status
- Certified Residential Appraiser
The key to this is LOCATION, ( highly desirable ) combined with NO townhouse comps in that location. This is the reason why we use a TH comp, we don't arbitrarily do it, we do it because that is what market participants would choose. A buyer wants to live in subject location, there are no other townhouses: what would the typically motivated buyer do, choose a different location, or buy a townhouse style condo in location they want? If an appraiser can not conclude most buyers would likely purchase a TH condo in subject location, they are not correctly analyzing market participant behavior. We don't change buyer/seller behavior to fit neatly into our appraisal. We analyze what they do . why they do it.I should have said they have their own foundation and are not mid-rise or high-rise condos. There are tons of condos that look just like townhouses, and there are no townhouse comps where the subject is located, which is highly desirable. I'm just making sure it is acceptable.
The lots of townhouses are typically postage stamp size, so the fact they own the lot has little meaning to a buyer. I would also advise an appraiser to use at least 2 condo comps as well, even if further away or less similar, to bullet proof the report for UW- but the close location non condo townhouse comps are most likely what a buyer would choose, so I would use both in the appraisal.