What to do when comps can't be found for a valid appraisal?

[Brian Nordman]

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!

[Darren Budahn]

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.