PUD vs Condo

[dane84094]

I have an engagement letter to appraise a "townhouse" that is in a PUD. There are no "townhouse" sales within the last six months and/or within one mile that are located in a PUD. All of the townhomes that have sold are listed in the tax data as condominiums. Can you compare the two or are they different? The area the subject is in is a stable market and in balance.

 

[Walter Kirk]

You can compare apples to oranges if you have to. In this case the type of ownership is different. You will have to go back to older sales of PUD townhouse units and Condo townhouse units to develop a basis for an adjustment which you can apply to current sales.

 

[Marcia Langley]

Generally, and in most markets, you would not want to compare condos and non-condos.

If you are really desperate for comps, go wider and farther back for non-condos, compare old sales to condos sold in that older time, and see if you can extract a difference for adjustments.

If you do this, be very clear on how you extracted comparisons from this normally un-comparable market. Show your work.

You'll need closed recent sales on page one but the older, less proximate, etc, sales can be gridded on the additional comp pages.

 

[dane84094]

I found a total of 3 towmhomes in PUD's within the last year that I feel are comparable. I will have to do some explaining. Is it unusual to use individual houses as comparables in situations like this? I don't feel like I need to but in case the underwriter asks for additional comps is this kosher?

 

[dobie]

I found a total of 3 towmhomes in PUD's within the last year that I feel are comparable. I will have to do some explaining. Is it unusual to use individual houses as comparables in situations like this? I don't feel like I need to but in case the underwriter asks for additional comps is this kosher?

You mean single family non-PUD detached? I would prefer to look at the condo units that are similar in style, utility etc.