Question: Can a fee simple townhouse be used as a comparable sale for a condominium townhouse?

 

Answer:

 

Absolutely.  I live in a condominium townhouse and own it in fee simple. Click here for a photo.  Mine is the one on the right.

 

Peachtree Square is less than a quarter mile from my house and is a PUD consisting of townhouses owned in fee simple. Click here for a photo.

 

With only 56 units in my complex, there are rarely three recent sales suitable for comparison.

 

Unless there are suitable comparable sales in the complex, the best comparable sales for Windsor Trace Condominiums are most likely sales in Peachtree Square.

 

There are only three differences that must be considered.  Peachtree Square units are bigger by about 200 square feet.  Windsor Trace has a significantly higher HOA fee.  Because of the fee, Windsor Trace is better maintained, looks much better, and has a pool with restrooms (no clubhouse).  Make value adjustments for these differences and the comparable sales will be good indicators of value.

 

The townhouses in both complexes are almost identical in age, design, style, and layout.  Of course they are comparable.  The rule of substitution prevails..

 

A condominium is usually owned in fee simple.  I live in a fee simple townhouse with condominium ownership. Peachtree Square is a fee simple townhouse in a PUD.  They are absolutely comparable.

 

Updated:  12/7/2009

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