Whats the deal with this house?

I was just looking at a preforclosure that looks good at first look - but the comps and tax assessment are weird - so I was wondering if anyone has any ideas as to what could be going on.
The house was sold originally on March 30, 2001, in the original principal amount of $128,300.00. The housing market has since had a major boom in our city, and the comps in the same neighborhood are running around $350 … except for one, on the same street as this one, which was sold recently for $129K. So I looked up the Tax assessment on the one I’m interested in, which is $120,000. You could say that this house is not as nice as the ones selling at $350 - but these are townhomes - so the outside must be to code, and the foundation is connected with others - so the house can’t have too many major issues - except for some ugly interior issues. Please let me know your thoughts … is there anyway that this house could somehow be income controlled? Thanks. Juliet

Sounds like your comps aren’t very good. You have an SFR and your comps are for town homes?

Tax assessments also should not be used to base comps or price on. The house that sold for $129 - was that a foreclosure, is it similar to the one you are looking at in condition?

Good comps would be similar nearby homes that have sold within the last six months in true arms-length transactions The original sale price of the home six years ago and the tax assessed value have very little to do with the current market value of a home. Don’t confuse yourself by comparing apples and oranges, each metric has its place in the process.

After some futher checking I figured out this this house was a Affordable Dwelling unit, which has a fixed sale price. Now I need to figure out what the deal is w/ ADUs. Since the place is in foreclosure I think that the ADU covenents are voided - but I’m not sure. Anyone have any ideas?

Contact the county - each county/city will have different ordinance on how these types of homes are treated after foreclosure.