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Can a condo (that looks like a townhouse) be used as a comparable sale for a townhouse.

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
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 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.

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.
 
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norapp

Member
Joined
Jul 11, 2016
Professional Status
Certified Residential Appraiser
State
New York
It is maddening and time wasting how RE agents classify/mis classify properties on MLS - they call condos townhouses and vice versa, have to make multiple searches to find comps. Also some of them can not even get the geo area right ! I've missed out on or almost missed out on good comps because they enter the geo area wrong. Have seen that on a subject many times as well and makes me wonder what offers they missed since other agents can overlook in searches. a wrong area listing. The seller never even realizes that - no wonder some listings linger nobody can find them
I have often wished I could give a class to realtors on the basics of how a listing should look. Really not my place but so many listings have wrong info and many times stuff just pulled from the sky with no explanation why. They need to realize that it's not only realtors looking at their listings but appraisers, lenders, buyers and sellers who use these listings to dispute appraisals. SMH
 

Denita Neuenhaus

Junior Member
Joined
Jul 21, 2015
Professional Status
Real Estate Agent or Broker
State
Florida
^Agree the concept of a class on the basics of how a listing should look. Wrong info hurts RE agents too when looking for appropriate properties for buyers or comps for sellers CMA. Personally, I have to run the searches several different ways and then manually scroll through a much larger search in order to see the listings mis-classified in a major way (property type, area, wrong subdivision). Not to mention the other incorrect info such as HOA fees, property taxes - even bedroom count and the property is on a slab. No excuse for missing an entire bedroom or adding an entire bedroom that isn't one.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
In my 30+ years appraising in "Chicago-land", that's pretty much my experience.
We Arkies love Chicago buyers. They will buy anything because it looks cheap...and by their standards is. Locals not so much, since condo ownership is fairly rare, it is often the out of state (sometimes retiree) buyer who buys them. But a lot of working Chicagoans come here to work for Wally World as executives. You can make the case that the typical demographic is a Yankee or a Texan. 40 years ago you could have made the case the average retiree buyer was a Californian whose family moved west in the depression and was basically returning "home". But in any case, they are more open to condo living. The older condos were usually geared towards something associated with a resort or golf course. And those in rural areas are basically a flat market They sold for $50,000 in 1980 and they sell for $50,000 now unless in tip top shape and then they might bring $65,000. But they are rare enough that 3 comps might be tough. I would say anything that is in the same price range, size, and age will probably be a "comp" imperfect or not as per ownership. Condos here are probably more sensitive to location than more conventional housing (SFR). Patio houses? Not well received.
 
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norapp

Member
Joined
Jul 11, 2016
Professional Status
Certified Residential Appraiser
State
New York
^Agree the concept of a class on the basics of how a listing should look. Wrong info hurts RE agents too when looking for appropriate properties for buyers or comps for sellers CMA. Personally, I have to run the searches several different ways and then manually scroll through a much larger search in order to see the listings mis-classified in a major way (property type, area, wrong subdivision). Not to mention the other incorrect info such as HOA fees, property taxes - even bedroom count and the property is on a slab. No excuse for missing an entire bedroom or adding an entire bedroom that isn't one.
Ditto
 

Samiam

Thread Starter
Freshman Member
Joined
Sep 14, 2016
Professional Status
Certified Residential Appraiser
State
Oklahoma
Condo is a form of ownership.
Townhouse is a style, and still a condo.
Usually. Depending on the legal docs.
Are they attached or detached as far as common walls?
That tends to make a difference.
I got this figured out. The subject is attached with common walls. Thank you.
 
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