3rd bedroom - worth $100k or $20k

[Surf Cat]

Too many differences and unknowns between different condo projects. Almost always better to look at history in the project than look at other projects. That is my experience with condos anyway.

Since there's no three bedroom sales within the complex since 2017, I'm definitely looking at all the 3 bedroom sales in the similar complexes the op states and throwing them in a spreadsheet.

this is a condo in a small high rise, there are about 10 of these small (7-10 story) high rises along the beach.

 

[Joe Flacco]

I thought she was saying the project has 10 high-rises but I think she was saying that there are 10 projects total on the beach and there are no three bedroom sales.

 

[Trihard]

Does your unit have direct access to the beach along with direct views of the water? Was the view of the comps similar to yours?

 

[Joe Flacco]

It's a tough appraisal.

It is probably Old Orchard Beach for people with nothing better to do.

 

[The Bob]

Appraiser A sounds like canned BS. All he did is state what he adjusted, there is nothing there to explain the "how" he got those adjustments.
I would have approached it like Appraiser B did.

I'd bet a $1 the price difference in 2017 sales had more to do with than just bedroom count.

 

[Joe Flacco]

Too many differences and unknowns between different condo projects. Almost always better to look at history in the project than look at other projects. That is my experience with condos anyway.​

I'm confident you would do both. Not just one, not just the other. If the area is short of 3bd units to begin with then we'd have to use outside sales anyway so we already have to consider location/project differentials.

In this kind of situation we would look at whatever we can. First thing I would do is break down the project though.

The situation doesn't seem to be that there are no three-bedroom sales in the project. It seems that there are not three-bedroom sales at all on the beach.

 

[Surf Cat]

I thought she was saying the project has 10 high-rises but I think she was saying that there are 10 projects total on the beach and there are no three bedroom sales.

"Just a few" 3 bedrooms in the area. Discerning the difference between 2 and the very few 3 bedroom sales is the crux of this appraisal imo. Difference between floor level and condition should be pretty straightforward and determined from the subject complex.

 

[Joe Flacco]

It probably makes sense to develop the income approach for a condo on the beach. At least look at rents for clues to adjustments.

 

[George Hatch]

That's another very valid way to do it.

 

[Joe Flacco]

All I know is $45 per SF adjustment for condo unit in a high-rise selling above 700 per SF doesn't sound right to me.