Oregon, IL · Member since 2016 · 104 posts · 32 votes
I'm currently in the process of trying to get a deal done one a duplex. I've been in talks with both a lender as well as a broker about the property. The lender informed me they would need three comparable properties to base the appraisal off of that have sold in the last 6 to 12 months in order for the loan to go through. If these three properties cannot be found the loan will not happen. Being in a small town there are not many properties similar to this one let alone ones that have sold in the last 6 to 12 months. If the broker cannot find me enough comparable properties what is recommended that I do? Can condos be used as comps for a duplex? Any help is appreciated!
The person who does the appraisal for the bank is going to be the one responsible for finding comps. If they simply won't do the loan because they can't find good enough comps I would look for a different lender.
The person who does the appraisal for the bank is going to be the one responsible for finding comps. If they simply won't do the loan because they can't find good enough comps I would look for a different lender.
@Darren Budahn That makes sense. The lender just suggested that I have the broker see if there were any possible comps before I spent the money on the appraisal and then have the lender tell me it's not good enough and a deal can't be done.
@Brian Nordman Banks don't like blowing the dust off ancient comps but I have seen them do it.
If not, I'd follow @Darren Budahn's advice and find a new bank. Any good lender adept at navigating smaller markets is used to not having loads of data at their fingertips and have undoubtedly found ways to deal with it.
If the duplex is a rental, and no recent sales comps are available, an appraiser should be able to use the income approach to come up with an appraised value.
1) The appraiser will use the best comparables available, even if that means expanding the comparable search to a different market area/county/city. A local appraiser competent in your market area should be able to find comps and complete the appraisal. There is always a way to find comparable sales.
2) No, condos can't be used as comps for a duplex. Totally different types of housing and ownership.