Updated over 2 years ago on . Most recent reply
Question about Running Comps
How do I run comps on a property that has no comparables in the area?
Most Popular Reply
No comparables? where are you looking for properties?
Properties that are in tiny towns and rural often are impossible to find good comps for. These gems will have Higher days on market, no contractors or easy access to supplies.
If there really are no comps, skip it. that's an immediate red flag. The person who buys this property from you eventually will also have no comps and therefor the appraisal value could vary drastically from what you were expecting.
With that said, Sometimes we lend on properties that are a little bit out there. I've seen an appraiser use comps as far as 12 miles out, which is crazy to me. So for your sake, I'd just go a little bit further out and look for properties in similar condition, age, and size.
But again, if it is indeed too rural, I'd skip that deal all together.