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Personal Finances / Buying or Selling a Home
|Subject: Re: No comps = no refi?||Date: 10/12/2012 12:35 PM|
|Author: JAFO31||Number: 124386 of 128403|
<<<Not rural at all. This is a home in one of the nicest parts of San Diego, just a few miles from downtown.>>>
"I wonder if your loan broker might be getting too picky with the definition of comps. Have you talked to an appraiser? They are really the specialists in appraising property and finding appropriate comps and adjusting for differences."
I am not a lender, loan broker or loan originator, and I am certainly not in the residential lending market every day, but there are three approaches to apppraising real estate (and comps, is only one way).
The three approaches are:
"1. Cost = Land Value + value of Depreciated Improvements;
2. Sales Comparison/Comparables - after adjusting for disimilar characteristics, including location, size, design and construction quality, age and other physical characteristics; and
3. Income = (Gross Income, adjusted for vacancy & collection) less Operating Expenses)/ Capitalization Rate."
Logic would suggest that even if comps are hard or impossible to come by, that one (or both) of the other two approaches would allow an appraiser to deliver an appraised value.
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