Jake Burhans made a valuation mistake using block comps to price a wood-frame Florida property. Block homes sell for about 15% more because they resist hurricanes better. If you don't adjust for this construction difference, your offer numbers will be way too high.
Yep. I just made a blunder there. Cannot compare wood with concrete. Just made an offer on this property and luckily he didn't accept it. We're going to do a counter, but I was running my comparables and I came to my offer number based upon comparables that were block when the subject property was wood. This is in Florida. Why is that important? Right. A property that is block concrete in Florida is going to be much more valuable than a wood house for obvious reasons. Right. Hurricanes can be more sturdy, less likely to get destroyed in a heavy storm. So Typically what we're seeing is that wood properties are going to go for about 15% less than block properties. So huge factor. So if I'm looking at a wood house and I see that the comps are block and I don't subtract value on the, on the after repair value, the ARV for the subject that's wood, you're going to be way off on your numbers.
