What if NO comparable sales?

**camiboxer** · 08-23-2009, 07:01 PM

I am interested in purchasing a REO property. My agent can't find any comparable sales since the property is fairly unique.
11 acres with a pole barn and cell tower. Sits behind 1+ acre lots with homes ranging from 75K to 500K.
Also backs up to rail road tracks as well as farmland.
Can find sales on vacant lots up to about 7 acres but directly off the street. At one time there *may* have been a gravel drive to the property but has since grown over and access on foot only (or monster truck!).
Certain things take away from the value (cell tower, location of lot-behind other homes and RR tracks) but the pole barn has to add some sort of value even though it is in need of repairs.
Do we assume the bad cancels out the good (size of lot and barn)?
Bank lowered the price by 20K after 106 DOM.
Now sitting at 145 DOM.
Unsure of any income potential from the cell tower as we were told two different stories by the listing agent. Waiting on a copy of the cell lease for a month now. Could make offer if we could figure out WHAT would be fair market value and contingent on the lease not having any odd clauses in it.
Income would be nice but not much of a factor in decision process.
Any suggestions on figuring out an offer price when comparable sales really can't "compare"?

**tucsonhomes** · 08-24-2009, 03:31 PM

Have your broker contact a qualified appraiser. Even if you don't buy an appraisal (which I recomend) appraisers are very helpful to brokers because they rely on our information to be able to do their work.

**Mike Taylor** · 08-25-2009, 04:19 AM

You might need to go farther out than the "immediate area" to get comps for a property like this. There are also other methods for obtaining value if the comparable sales approach does not work.

**Greg** · 08-25-2009, 07:22 AM

You said the bank lowered the price by $20,000 which means nothing without a list price. This could be 1% or 50% of the list price.

You sound fairly anxious which means there is a value in the property for you. Are you unique in your interest in the property or will others see this value and be your competition? I doubt you are alone.

The railroad tracks could be a big plus depending on the location and zoning.

In any case just throw a low ball at them and see what their reaction is. If it has been on the market for a lengthy period of time then they might take it or something close. If they stick to their price then put an appraisal contingency in your contract and worry about it after you have the property locked up.

**camiboxer** · 08-27-2009, 12:03 PM

You sound fairly anxious which means there is a value in the property for you.

Actually we are not "anxious". Been looking for upwards of 10 years. There is a value in the property for us since it includes a pole barn (in need of work). Have been looking at vacant land with plans to build a pole barn and this came along. No real NEED to buy since we are not going to live there but would be nice to own property versus continue to pay rent to various storage facilities.

Original LP was $129,900. After 106 DOM dropped to $109,900. Been trying for over a month to obtain further info on the property and LA said that we wound have to make an offer to "get the bank moving" and provide such info. Sent offer yesterday of 80k. Now we wait.
No other offers and a total of 3 viewings in over 150 DOM....2 of which were ours.

Comps were all over the place. One acre anywhere from 7K to 150K. No structures on any of those properties. All undeveloped.

**Hollywood Landlord** · 09-01-2009, 10:15 AM

I had a similar situation in western Maryland once myself. There were no consistent comps for the property we wanted to buy in the area which made it a very difficult process in not only knowing what offer to put in, but equally hard for the banks to lend on an area with such wildly differing comps.

The bank finally came back - it took them almost 90 days and when all was said and done, the comps they came up with didn't feel good to us, so we walked away.

At a certain point, you need to go with your gut and assess how much value you think having a pole barn already in place vs. continuing to lease is worth to you.

Good luck either way!