No Comps Available Problem
I have a triplex I'm lending on in Louisiana. It's in a smallish town but easily makes our 50K MSA minimum.
Our underwriters prefer comps to be the same number of units, within 10 miles and 12 months.
There simply are no triplexes sold in this town within this time.
An appraisal inspection was done with our usual national appraisal co and the appraiser wanted to use comps 30 miles away and in the city of Baton Rouge. After a great deal of conversation, the appraiser, who at first was willing to explain to our underwriters why he used the comps he did, withdrew his offer to write up the appraisal.
The same appraisal company reached out to 5 other appraisers who declined to take this on.
This is the first time in years of lending and thousands of loans that we have come across this situation. Maybe we have just been lucky till now.
Suggestions welcome.