What is an alternative to comps, how can I find a solid ARV.
Also, I have found a house that is a year old but, I can’t find any info on it. All I can find is the land value. House has never been lived in since built. Also doesn’t really fit in neighborhood. Don’t think comps will be sufficient.
Alternative your kidding right? There are a few ways to arrive at comps, but no alternative. The best is to know your market intimately and arrive at a comparable through experience. The second best is to use someone else s experience, preferably someone you trust with your bank account. The last is to ask several Realtor s what they think it should sell for and they will pull comps and tell you what the comps are.
Redhawk
The ARV is not just what educated professionals say the value of the house will be after the rehab. The financing generally can be obtained for the purchase and rehab as long as the total is less that 80% of the ARV. I had the same problem about 5 years ago. I found a house that was in a vacation/retirement neighborhood at the lake. All the houses had been built to either retire in or vacation in 15 years ago. There had not been any sales to use as comps since it was built. Knowledgeable professionals put an ARV of $160k on it. I got an accepted offer of $80k that needed about $10k to $15k in rehab. Since I did not have any comps I could not get it appraised in a manner that would be acceptable by my lenders.
At the time there was an appraiser that did a constructive appraisal and build the value based on local knowledge. He still used comps but they were from neighborhoods that were outside of the ½ mile radius. He had to do work to determine which neighborhoods compared to this neighborhood and then used those comps to build ratios and applied those ratios to the subject property. But with the new rules on appraisal I don’t know if that works anymore.
Ask your appraiser if he can do a constructive appraisal an appraisal without comps.