Negotiating W/ NO COMPS

[Lee G.]

I have researched a duplex for weeks and finally made an offer and now the seller and I are going back and forth.   It's my turn to counter offer or accept!

Here's the Pros

1) I love the location (good rent appeal)

2) its already rented 

3) it would cash flow and have acceptable ROI numbers even at the price the seller has countered my offer with.

Here's the Cons

1) there are no comps for this duplex!   

How do you negotiate in a situation when there aren't comps?  

It's my understanding that duplexes are valued by comps similar to single family properties.  I found a house on the same block, only 2 houses down that that sold a little over a year ago and the price per square foot was $3 cheaper.  This house had many features and qualities that this duplex does not have.  Therefore, I think it would be logical to assume at minimum a comparable price/sq foot.   If I use that house as a comp, and multiple that sq footage by the comp price per sq foot, I get a value that is $8,000 lower than the current counter offer price.  Is this a valid way to look at it since there are no apples-to-apples comps?

This property would make sense either way, but it's a matter of a good versus really good deal situation.