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Updated over 7 years ago,
Duplex comps - Sacramento - anyone knows appraising process?
Hi,
I am looking to refinance a duplex in Sacramento that we bought 2 years back and there are hardly any comps available in the neighborhood.
What are the ways I can estimate the appraisal of the property? Single family houses in the neighborhood have been going up at more than 10% annually since I purchased and I have renovated and raised rents by 40% in 2 years. So, I am hoping that the appraisal comes out at a significant higher value. But when I look at Realtor.com estimate, the duplex shows up as 10% up from our purchase price.
Even though cap rates do not directly apply to Duplex, what is a typical multi-family cap rate in Sacramento these days?
Tax assessment is pretty low for the area for some reason and that is a critical factor in realtor.com estimate. I am wondering what appraisers look at in absence of comps of similar units and how they come up with value. Any feedback would be appreciated.
Thanks
Raman