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Updated over 11 years ago,
Deal Analysis - should I include foreclosures when evaluation comps
I am working on putting a property in contract to wholesale in a great and safe neighborhood in Columbus, OH. My problem is with evaluating the comps.
Property I'm looking at:
asking $60k but willing to negotiate
Currently rented for $950/month but tenant will move out early
Neighborhood is all SFH and primarily owner occupied.
3 bed, 1.5 bath
House is in great condition, big yard, nice deck, appliances and flooring are outdated but clean and in good working order.
Here are the 6 month comps on the block. Should I value it around $110k because all non-foreclosures have sold around there, or much lower because of the foreclosures?
Price Bed/Bath
$122k 3/2
$121k 3/2.5
$106k 3/1.5
$72k 3/1 (FORECLOSURE)
$68k 3/2 (FORECLOSURE)
$66k 3/1 (FORECLOSURE)
Thanks in advanced for everyone's help!