4 units with no comparables

[Homestead]

Any suggestions on this one would be greatly appreciated -

I am working on an appraisal on the island of Kauai in Hawaii. I know that most of you do not have experience on islands, however, I am looking more for where else do I go when there are no comps. Jumping islands really does not work because each island has its own market.

Situation: 4 small homes on one lot - all legal with regards to zoning, etc.

No sale of any 4 unit properties on the island in over a year. The only sales for 2-4 units in the last 12 months are 2 unit properties. No active listings either.

Income approach is not any easier as there is very little information on rentals for multi-family properties available here.

Any thoughts????

 

[Mike Kennedy]

Highest and Best Use may be either 2 or 1 unit or Vacant Lot. What does the rest of the market data indicate?

 

[Louis Pompeo]

You can do a sales comparison approach and analyze the (2 unit comps) via 'price per room', 'per sf', 'per unit', and GIM,EGIM (yes, the income multiplier analysis is sales comparison.)
"This", you may say, "is a weak indicator of value!", and you may be correct.

That is why the Appraisal Gods gave us two more approaches to value that we may do a better job of estimating value with.

Good luck.

 

[Rufus]

Jumping islands really does not work because each island has its own market.

I'm probably in way over my head here, but I'd say do as the others have already suggested, $/SF, $/Room, etc. and then as additional comps, jump islands. Provide market data to show why the different islands are another market and then adjust for that difference.

 

[Kevin A. Spellman]

Go back when the last four unit property sold; compare the prices in percentage difference between this four unit property and a two unit property in the same time period. Use the same percentage difference for the sales today. I have gone back ten years and the report was for a lender for sales data to create a percentage difference.

Identified the last four unit sale in the market and look at the last four unit offered for sale. Discuss market performance of four unit properties. Profile the typical buyer, owner occupied or and an investor.

 

[RSW]

I worked in Kauai in 1992 after hurricane Iniki as a disaster housing inspector contracted with FEMA. Had to sleep on the beach because there were not rooms at the hotels.