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Same street, two prices: why one house costs $111k more and how to adjust comps

Two 2-bed houses on the same Tacoma street were $111k apart: $289,000 as-is versus $399,950 renovated. The cheap one was not a discount. Once you measure both the same way and adjust for condition, the as-is house is worth about $360k fixed, and a flipper could pay roughly $200k for it.

The pair

8205 S Bell St, Tacoma (listed 2026-06-18 at $299,000, cut to $289,000 on 2026-06-29) and 7632 S D St. County records and listings queried 2026-07-18.

The size gap is 8%. The price gap is 38%. Nearly all of the difference is condition, and condition is exactly what a flipper has to buy.

One street, two markets

Move-in ready Owner-occupants with mortgages bid on the monthly payment, pay for the finish Gut job, as-is Cash or hard-money investors subtract rehab, carry and profit, then bid

Conventional lenders generally will not finance a house that is not habitable, so the as-is buyer pool is investors only.

A move-in-ready house is bought by families competing on a mortgage payment. A gutted one can only be bought by investors who work backwards from the finished price. The gap between the two markets is not a bargain; it is rehab cost, carry, risk and the investor's margin.

Building the comp adjustment table

$480 $430 $380 720 800 900 1,000 sqft $403 · livable, not new $483 · full flip + A/C $453 · one street over $414 $410 · same street $404 · one street over $377 · same street subject ask $378 as-is target renovated $460–480

1–2 bed sales in 98408, roughly March–June 2026, priced on county finished area. The curve is the small-house premium.

Four adjustments explain most same-street gaps. One row per comp; state each assumption so it can be argued with.

Comp (sold)BasisCounty sqft$/sqftSize adj.Condition adj.Adjusted $/sqft
7632 S D St, $399,950, 2026-06-02Full flip, mini-split, ceiling comp828$483+$10−$20 (superior finish, A/C)$473
7411 Fawcett Ave, $385,000, 2026-05-08One street over850$453+$120 (tier not verified)$465
6830 S Bell St, $380,000, 2026-05-29Same street, 68th block927$410+$350 (tier not verified)$445
7209 S Bell St, $362,000, 2026-06-09Same street, 72nd block960$377+$400 (tier not verified)$417
111 S 80th St, $290,000, 2026-06-18Livable, not renovated: floor reference720$403−$5not adjusted (different tier)floor, excluded

Size adjustment: smaller houses carry a higher $/sqft, so larger comps are adjusted up. Condition adjustment: only where the tier is documented. Age and lot: all comps are pre-war on city lots, so no adjustment; the subject's 7,150 sqft lot is a plus but does not change a flip resale. Per-item dollar figures are our judgment, stated so you can change them.

The strongest comp is the one that matches the finished product: same bed count, full flip, sold weeks ago. Weighted toward it, a renovated 764 sqft house lands at $460–480 per foot, or $351k–$367k. We use an ARV of $360k, not $400k.

Where the $111k gap actually goes

Listing gap $110,950 $40k smaller house, lower ARV $65k rehab $6k What a flipper still has to cover $20k carry $23k selling $50k target profit Buy at the $289k ask: about −$41k. Break-even $249k. $50k net needs about $201k, 69% of ask.

ARV $360k, rehab $65k (about $85/sqft, full interior), sample hard-money terms (76% purchase loan, 100% rehab loan, 10%, 1 point), 6.5% selling costs, $600/mo holding, 6 months.

$40k of the gap is the size and finish difference, not a discount. Of the $71k that is left, rehab alone takes $65k. Carry, selling costs and profit still need $93k. Bought at ask, this flip loses about $41k; it only clears a $50k net near $201k.

Three questions before you call it cheap

1
Is the gap condition or size?
Put both houses on county finished area. A house 8% smaller has an ARV that is lower, not just a price that is lower.
2
What does the rehab cost?
Price the full interior on a per-foot basis and keep a high case for a 1940s house until inspection says otherwise.
3
Will it sell at the expensive one's price?
Only if it matches size and finish tier. Adjust the comp, then work back to a price you can pay.

If you can answer all three, you know whether the cheap house is cheap. Here, it was priced as a finished house per square foot while still needing every finish.

Why we publish the table. We flip houses ourselves and passed on this one at its asking price. Our methodology shows how comps are verified against county records before any adjustment is made.

Sources

Please read. Figures are from a public-data analysis dated 2026-07-18; listing status and prices have likely changed since. Loan terms are sample terms, not a quote. This article is for informational purposes only and is not an appraisal, brokerage service, or investment, legal, or tax advice. Verify independently and consult licensed professionals before any real estate decision.

FAQ

Which square footage should I use for comps?

The county's finished above-grade area, for both the subject and every comp. Listings often add unfinished basements, garages or enclosed porches. Price per square foot only means something when every house is measured the same way.

How big should each adjustment be?

Big enough to reflect what buyers in that pocket actually pay for the difference, and no bigger. Read it off paired sales where possible: two similar houses that differ mainly in one feature. Where you cannot, state the assumption in the table so a reader can disagree with a number instead of a conclusion.

Why do small houses sell for more per square foot?

Every house carries fixed value in its lot, kitchen, bath and systems that does not shrink with the floor plan. Spread over fewer square feet, that fixed value pushes the per-foot figure up. Applying a big house's $/sqft to a small one understates it; the reverse overstates it.

Does PropDossier appraise the house?

No. A PropDossier report organizes county records, sold comps and listing data into an adjustment table with every figure linked to its source. It is not an appraisal or investment advice. Hire licensed professionals before you buy.

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Published 2026-08-26 · Updated 2026-08-26 · PropDossier Research