cant find comps

5 Replies

what do i do if i can not find comps for a multifamily? how am i supposed to estimate the what its resale is?

What sources have you used to try?  

The question is (a) are there sales which you are not finding or (b) are there no sales. If you are pulling directly from the MLS and using appropriate search criteria, then you might expand your search criteria, assuming that the areas to which you expand your search radius are still "comparable". If it is "b", and there are no sales for your specific type of property in that neighborhood, then depending on the reason, that alone with tell you something else (it is possible that no information is, in fact, information in itself).

@Danny Woodson

 Good thing about multifamily is you can use the income approach (cap rate) to get a ballpark figure. I understand that 2-4 family dwellings are comp approach. However, investors are the ones buying these things, so if you have access to mls, look at what everything is being rented for and what cap rate they are selling at. That should give you a rough estimate

Look at the tax assessor database to make sure you aren't missing properties.   How many units?  Multifamilies of 5 or more units usually base value on cashflow but someone with more versed in that method of valuing can probably help you better on that one.

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