Are Municipal Transactions Useful Comps?
I am working on a land listing and my client has requested we provide them with comps on recent land sales, and current office/retail rental rates for a 1 mile radius. 

I discovered a vacant property of very similar size &lt;1 mi away, was purchased by the city in late 2013 from a private company. The sales price is shown in the city council agenda, and includes this "An independent appraisal established fair market value for the fee simple taking in the amount of *sales price*" in the minutes. 

The sales price for this land is more than double what we intend to list for, and is true for practically every other sites currently on the market. There is only one other property for sale nearby that comes close to that $/sf price and it's 80% smaller in size. 

My question is this; are municipally purchased properties good to include as a comp? 

[{"id": "czecjlh", "text": "I would typically include the sales record in the comps, but I would explain to the client why the comp would be invalid or not comparable to your subject site.  \n\nYou should know: Why did the city buy it? What is the intended use for the site now?  What was your market like in 2013 (is that info relevant to today)?  \n\nJust like any other comp, there can be a variety of factors at play that influence what someone (or organization) will pay.  Having the answers for the comps you use will help you justify your price and demonstrate to the client your knowledge of the market.", "replies": [{"id": "czedjyh", "text": "Thank you for the reply. I should say that I am an agent, and not an appraiser.\n\nCommercial comps can be exponentially more difficult to nail down simply for the fact my state is a non-disclosure state. I think it's how much the city paid for the site that's throwing me for a loop. Although, the company they bought from is currently doing MAJOR developments that'll boost the tax base, so maybe a little quid pro quo??", "replies": [{"id": "czeqvrb", "text": "Oh, should have clarified on my end; I am an agent as well.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "czes9ah", "text": "I'm guessing TX. A sale where a municipality buys something is probably not going to be typical market and from what you describe of other sales in area it sounds like an outlier which pretty much tells you it wasn't typical market.  You never really know unless you know all the facts of the sale. Call the municipality, they will tell you everything about the sale. They have no reason to keep it a secret. I am an appraiser. ", "replies": [], "depth": 1}]