Appraisal on a 4-plex when there are little to no COMPS

[Jonathan Pflueger]

I am refinancing a 4-plex, in a small town, right outside of the San Francisco, Bay Area. The nearest comparable is within 3 miles but it last sold in 2018. The next closest comparable is 8 miles away and in a very different demographic/price range of properties (properties are significantly more expensive). 

When there are few comparables, are their other methods an appraiser will use when estimating value? Would they use an income approach?

Thanks!

[Chris Mason]

Originally posted by @Jonathan Pflueger:

I am refinancing a 4-plex, in a small town, right outside of the San Francisco, Bay Area. The nearest comparable is within 3 miles but it last sold in 2018. The next closest comparable is 8 miles away and in a very different demographic/price range of properties (properties are significantly more expensive). 

When there are few comparables, are their other methods an appraiser will use when estimating value? Would they use an income approach?

Thanks!

 Income approach is less likely. 

They would more likely compare to duplexes and triplexes, and adjust for unit count, or look farther out than the "within" 0.5 miles that they "like," and adjust for location. They can also go back farther in time, and do an appreciation factor.