Valuing a tear down property

[KJR2008]

Assignment is for a purchase, the property is in very poor condition and I assume the buyer is going to tear down and rebuild, it is an older area in transition, lots are being purchased for new homes. MLS indicates the subject property is being marketed as lot value only. I have a similar sized recent vacant lot sale on the same street that sold for $150,000, sure this was used in developing the asking price. for my subject property. The problem I am running into is all the comps with improvements in similar poor condition as my property are in the $90,000-$115,000 range, lots are similar, some slightly smaller some slightly larger. Any thoughts would be greatly appreciated.

 

[George Hatch]

I don't see a problem, my friend. It looks to me like you have comps. Go forth and appraise.

 

[DTB]

90-115 adjusted for size variance

Subtract local cost to raze the house and cart off the rubble, from the $150K lot sale.

See if the lot on your street and your subject are possibly superior to the others.

Seems pretty straightforward from here.

 

[andrew81]

what is the question?

 

[DTB]

what is the question?

He/she can't hit that 150 mark.

 

[Joe Flacco]

Some things to consider may be 1) that the other improved properties in similar condition are inferior locations. 2) the vacant lot on the street may be more advanced development status with permits
already approved.

There are probably other considerations.

 

[Joe Flacco]

Maybe the zoning is not the same or shape / dimensions of the lot is not the same.

 

[Joe Flacco]

Maybe there are already many new homes on Street but not yet on the other streets.

 

[J Grant]

Assignment is for a purchase, the property is in very poor condition and I assume the buyer is going to tear down and rebuild, it is an older area in transition, lots are being purchased for new homes. MLS indicates the subject property is being marketed as lot value only. I have a similar sized recent vacant lot sale on the same street that sold for $150,000, sure this was used in developing the asking price. for my subject property. The problem I am running into is all the comps with improvements in similar poor condition as my property are in the $90,000-$115,000 range, lots are similar, some slightly smaller some slightly larger. Any thoughts would be greatly appreciated.

Either the 150k sold lot on same street was a vastly over priced sale and the other lots are MV price, or there is something superior about that lot or subject street that deserves higher $ as supportable. That is up to you to determine from the market.

IS HBU going to be other/vacant /a land appraisal? Since if it is in such poor condition sounds like a C 6 house ...

 

[Lee Lansford]

...
The problem I am running into is all the comps with improvements in similar poor condition as my property are in the $90,000-$115,000 range, lots are similar, some slightly smaller some slightly larger. Any thoughts would be greatly appreciated.

Tell us what use was made of these properties following their sale. That will tell us a great deal.