No Good Comps. What to do?

[Munir Hassan]

I am looking at a 3 family, listed at $650k

- bed 2/2/2

- bath 1/1/1

- fixer upper

- 2800 square feet

After seeing the property I realized the agent was calling a dinning room a bedroom, even though you had to walk through it to get out the house. Really it’s a 1/1 on all floors in my opinion.

Comps in the area show two three families sold in the past 12 months.

Comp 1: $650k

- bed 3/2/2

- bath 2/1/1

- 3200 square feet

- needs work

Comp 2 $570k

- bed 3/2/3

- bath 1/1/1

- 2700 square feet

- needs lots of work

All the other properties sold in the area are either single family or 2 family homes. These don’t seem like good comps to me. In this situation would it be reasonable to use a 2 family as a comp and use a cost per square foot to account for the additional square footage in the 3 family?