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Using a comp from the same owner

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MarkRichmond

Thread Starter
Freshman Member
Joined
Jan 16, 2002
This is a new one for me. I just appraised a house from a couple that goes around our area buying residential properties, living in them for 6 months, doing extensive renovations and then selling them for a nice profit.

This is the second one I have done in the last 4 months and the last one makes a great comp to the current one. I don't see a problem using the sold comp againts the subject, even if the same owner owned them both. Am I missing something? What do you folks think?

Thanks,
Mark
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
As long as it was an arms length sale, is cash equivalent, or you adjusted for such conditions, I don't see a problem either. From the little bit of info you gave, it sounds like a perfectly legal, market sale of a rehab and sell deal.
 

Ken in Arkansas

Junior Member
Joined
Jan 20, 2002
Professional Status
Certified General Appraiser
State
Arkansas
As long as all data can be verified through other sources, I would not hesitate to use one comp. I would disclose to your Client that fact however, but I don't think that I would use more than one sold by the same person.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
:lol: Would that I had such problems!

Sounds not only like a good comp, but probably the BEST comp if the other features were similar enough for your to use it anyway, it helps support the fact that the sellers have a track record for fairly good quality remodel/resale work!!!

And GRACEFULLY gets you into the discussion about "why my subject sold for 'X' then 'X+ a bunch more' a few months later"! :wink: :roll: :wink:

Works for me!

I see no impediment to useing the sale!
 
Joined
Jan 13, 2002
Professional Status
Retired Appraiser
State
Florida
I don't see any problem with this as long as you disclose it and the previous sale history of the subject and all the comps.
 

Lee SW IL

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
In new construction you would use two of the homes from the same builder. It goes with the quality of renovation.

But, I would explain. It gives your client the impression that you do thorough work.
 
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