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» Support Your Property Values
A property owner orderd an appraisal on his property with an eye to establishing value in order to obtain a hard money loan. The appraiser provided a number based on income and use potential and provided 'comps'. Citing a dearth of local comps, the appraiser listed comparable properties from a major city about twenty miles from the small town in which the subject property was located. The city was over a state border, meaning the comps were in another state. The loan was denied based on the comparable property location problem - lenders felt that the property probably didn't have comparable value to the big-city properties to which it was compared.
The owner, however, understood his situaton better. He understood that his town was a suburb of the city, that his business served residents in and around that city, and that his property would hold value against those comps. He waited a few months and then ordered up fresh comps to amend his appraisal. Sure enough, there were several new sales in own town that supported the value. The owner re-submitted the loan request.
Tip: Take charge of your loan request and the elements that support it. Hiring a professional to develop your appraisal or assist you with your financial loan package is important. But only your tenacity will make sure your loan request gets that supporting evidence you need to get the loan.
