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Comparable Has Re-sold

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Compass Rose

Sophomore Member
Joined
Apr 16, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
The subject property is in need of work. There is a sale I want to use as a comparable that sold almost a year ago. When it sold it was also in need of work and very similar in other aspects. It was remodelled and then re-sold 5 months later.

Can I use the older sale date/price/condition? I could mention in the addendum, or under the grid that it re-sold more recently but condition was considered more comparable the first time.... It sold for about 16% more the second time, so if I were to use the second sale, I would have to make a large condition adjustment.

Whattaya think?

Thanks!
 

airphoto

Senior Member
Joined
Jan 15, 2002
Professional Status
Retired Appraiser
State
Pennsylvania
With appropriate remarks in the 3-year sales history ..
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I would use it...just explain why. Something like "This property was in very similiar condition to the subject property at the time of sale. It was purchased by an investor who has rehab'd the property and sold it for a profit". This is a great comp because it demonstrates the market for properties in the same condition as your subject.

I would also hang on to the data on that sale and start a file on "investor rehab properties". It will demonstrate how condition affects price.
 
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