Condo Budget Analysis

[DJBanas]

I take Mike Garrett's approach of asking the questions and noting the who, what, when & answers in the addendum. I have received some budgets but none that would make the analysis meaningful.

 

[MNRural]

This is beyond the scope of my appraisal. I make the assumption that it is fiscally sound and prudently managed, unless otherwise known, and that the client's underwriter and legal council should review any or all legal or financial documents.

 

[Alison Swain]

I'm not an occupancy, permit, construction, inspector or title policewoman either. I wish I had a $1 for every one of my condo questionnaires that are returned to me that have contrary information in them vs. the budgets, reserves, ownership of the clubhouse/pool/tennis courts and percentage of owner occupied units that I have from other sources.

The game has become to do the best job possible, but at the same time, to limit your liability. Lame? I think not.

The other part of the game is that condo associations have become savvy to the reasons we're asking certain questions --- and have adjusted their responses accordingly.

A least in Cnetral Florida, there is usually a vast chasm between what the CA rep tells you is the percentage of renters to what the numbers of absentee owners reveals.

 

[Lost Cause]

Beyond Scope? Lawyers and Accountants?

So exactly how many appraisers are giving budget analysis without any formal training in that matter? After 32 years of appraising, teaching and taking hundreds of classes/seminars, I have never even seen one advertised on Budget Analysis.

I can think of a good dozen courses offered by various appraisal organizations covering analysis of income and expenses in real property. I do not understand how so many consider this beyond their expertise.

 

[DTB]

I can think of a good dozen courses offered by various appraisal organizations covering analysis of income and expenses in real property. I do not understand how so many consider this beyond their expertise.

Remind me again, what benefit is thrown off from assuming this additional liability? Oh, that's right $0000

 

[jay trotta]

JHH

licensing in appraisal work does not covered a multiple of sins; it is to provide an Estimated Opinion of Value for a Lender or other Client......Period !!

The canvas we paint on does have "limitations"......it is Not a License to perform numerous tasks with "Limited" educational requirements. I don't see any CPA's trying to do Appraisal Work; I don't see any Auto Mechanics trying to do Appraisal Work; I don;t see any Carpenters trying to do Appraisal work; I don't see any Plumbers trying to do Appraisal Work......Etc.

When you acquire a "Specific License", thats what you have been Qualifed for; beyond that is exceeding Your expertise. Lets see how many Lenders, once they are "Licensed" want to play Appraiser....this will get very interesting, once those Laws are in pace.

 

[Lost Cause]

Remind me again, what benefit is thrown off from assuming this additional liability? Oh, that's right $0000

OK, for starters, how about the benefit of a satisfied client?

 

[Couch Potato]

Condominiums require research.

So exactly how many appraisers are giving budget analysis without any formal training in that matter? After 32 years of appraising, teaching and taking hundreds of classes/seminars, I have never even seen one advertised on Budget Analysis. If you do not disclose your lack of experience, or associate yourself with someone who has such expertise (like your CPA) I can only think there are thousands of misleading reports floating around. Glad my name in NOT on one of those.

I don't know the exact number, but I would think it is far more than you may realize. I know many appraisers have not even had a basic economics class, but there are also many appraisers with a decent education. One need not be a CPA to analyze a budget (although it wouldn't hurt.)

I agree on the large number of misleading reports. Given that at least once a month we have a thread here started by someone who cannot even identify a condo, I'm sure there are a large number of people doing condo assignments that are clueless about what they are doing.

 

[Lloyd Bonafide]

OK, for starters, how about the benefit of a satisfied client?

Forget it. I've done maybe 1500 condo appraisals going back to the 1980's, and I've never been asked to review a budget, so I won't be starting now.

 

[Lee Lansford]

OK, for starters, how about the benefit of a satisfied client?

I have to say that in my 25 years of appraising properties with condo-ownership for lending use--and communicating the appraisals with a Fannie form--I have never "analyzed" the budget. The response thus far from a multitude of clients: Silence as to the lack of budget analysis.