When we search homes, we naturally use sales comps. Most of you mentioned in the previous homework that you checked similar properties in New York to find out a proper price range for the subject property, which is a great approach.

Although we learned about the sales comp process, in reality, we probably cannot use the detailed process when finding market value of property of your interest as we do not have enough information $($e$.$g$.,$ pricings for lot, upgrades, market condition, etc$)$ as we are not an expert$/$appraiser$.$

Thus, in this exercise, we will learn how to narrow down the search to find the proper comps using the same property in New York. Remember, the key to sales comps is to minimize the adjustments, which means that find the most similar property as possible. Additionally, you need to justify any adjustments you make at the end such as how much you adjust for differences and why?

p$.$s$.$ Please follow the instruction to find the comps and estimate the market value of the subject property. This exercise does not have a correct answer as you will find the comps based on your judgement call. However, if you provide comps that are significantly different from the subject property, you won't receive a full credit for this homework.

Investment value can be from $$0$ to unlimited as it depends on investor's willingness to pay. However, market value has to be set at certain amount!

Question $1$

We discussed the investment value for the property below two weeks ago. Investment value is how much you as an investor are willing to pay for this property. As we learned about the sales comparison, let's estimate market value of this property using sales comps approach?

Address: $320$ Riverside Dr #$11$B$,$ New York, NY $10025$

Property Characteristics: $2$ bed $|2$ bath $|$ about $1,100$ sqft

Est. Rent: $$5,500+$ a

Built year: $1929$

Building Type: Co$-$ops

Condition: Fully renovated in $2023$

Open space from living room to kitchen, fully upgraded bathrooms $($marble$-$look tiles and frameless glass shower$),$ luxury vinyl plant throughout the property, high$-$end appliances, in$-$unit washer$/$dryer$,$ in$-$unit A$/$C$,24/7$ concierge service

You may not be able to find this subject property's information online. Use the key property information above and filter the search in the real estate website.

Limit the transaction to recent sold properties within $6$ months not current listed property. Listing price is different from sold price.

Limit the building size from $1,000$ to $1,500$ sqft

Set the number of bed and baths to exact match to $2$ beds and $2$ baths

Building Type: Condo and Co$-$ops only

Limit the geography to west Manhattan; Focus on the West side of Central Park from $60$th st $($Lincoln Square$)$ to $110$th st $($Columbus Univ$).$ They are Upper West and Manhattan Valley neighborhood. Remember real estate is segmented and localized. Each neighborhood is different even within Manhattan.

Think about how you select comps or adjust values for the fact that subject property is fully renovated in $2023.$

Try to select the comps close to subject property but if the condition is too different, broaden your search to find similar comp properties.

Please estimate your market value of this property using the comparable properties. You need to share at least $3$ links to your comparable properties.

Your answers should include but are not limited to:

Estimated Market Value using Sales Comps $($$$)$:

Comp $1$ Link:

Comp $2$ Link:

Comp $3$ Link: