4-plex Appraisal with Few Relatable Comps

[George White]

Hi everyone- I am at the Refinance stage of my 4-plex Brrr. I have started the cash-out refi process and am awaiting the appraisal.

When I first bought the 4-plex, I noticed that the appraiser pulled comps that were in different neighborhoods and even up to 5 miles away. ALL of the comps he pulled were in worse areas than where my property is. The property happens to be one parcel east (wrong direction) of a major dividing street in Kansas City "Troost". There were zero comps pulled from west of Troost. All of the comps were between 1 and 5 miles east of my location. The comps really were not comparable. I am having an agent search for comps around my location. Hoping to give this list of comps to the new appraiser. In my short search I didn't see many 4-plexs that sold in the immediate area recently.

Question is- If there are no decent comps in the area, and they go and pull similar properties that are miles east of my location, what can I do to support my case that the comps really aren't comparable. Any tips?

Thank you!

[Lee Ripma]

@George White

I deal with this all the time in KC. You want to feed your appraisor comps. Yes, go further out, 5 miles and 600 days and see what you get.

At the end of the day they are going to use a GRM to value. You want to make sure you can make a case for your GRM being high, at least 100 but ideally 110-125. If the property is nicely rehabbed with solid rents this should return you a good value. You need to try your best to feed good comps with high GRMs at sale.