Co-Op Appraisal

[Marty Gutoski]

Doing my first co-op..need proper procedures,forms etc.

 

[Tony V]

Try this

https://valuationsupportservices.com/Document/ImportantInfo/2005%20Forms.pdf

 

[esturni]

inspection is the same as if you're doing a house, usually a lot quicker!

note what floor the unit is on, how many elevators, doorman, parking, amenities, etc. if they have a nice view, take a picture of it.. if they have a balcony, take a picture of it, etc.
for exterior pictures, i take the front, street, and entrance. i dont see the point in a picture of the rear.

then send a questionaire to the managing agent

 

[KenRossman]

Doing my first co-op..need proper procedures,forms etc.

Here is a comprehensive co-op questionnaire to be filled out by the managing agent or co-op board representative - not all items are applicale in all situations. You must also review and analyze/comment on the recent financials as well as the prospectus.

Good Luck!

Please fill out as completely as possible and include
any sales in the building in the last six months.

Please fax back to ASAP - Fax #

Thank You!

Cooperative Managing Agent's Questionnaire

a. Total # of units:

b. Total # sold:

c. Total sold & Owner occupied:

d. Total sold & currently sublet (c + d=b):

e. Total Sponsor, holder of unsold shares & investor? (a b=e): Total

f. Total # of shares:

Subject Unit:

g. # of shares for subject unit:


II. GENERAL INFORMATION Please circle one:

a. Does any entity, other than the sponsor, own more than 10% of the shares in the coop? Yes No

b. What is the expiration date of the proprietary lease?

c. Is there a Ground Lease? Yes No

If YES, what is the expiration date?

d. Does the coop maintain RENT LOSS INSURANCE? Yes No

If YES, how many months coverage?

e. Is there a flip tax or transfer fee charged upon sale of a unit? Yes No

If YES, describe the terms of the flip tax and explain how the tax is
calculated.

f. Has the maintenance been increased by more than 10% per annum in the last 24 months? Yes No

If YES, How much? And why?

g. How many owners are more than one month delinquent on their maintenance?

h. Are there any existing tax abatements currently in effect? Yes No

If YES, Expiration Date:

I. When was the building converted to a co-op?

J. How many elevators are there?

K. Is there any parking facilities?

L. What utilities, if any are included in the monthly maintenance fee?


III. MORTGAGE INFORMATION

1. Is the coop's underlying mortgage:

Self Liquidating FIXED? BALLOON Fixed? ADJUSTABLE fixed?

a. Balance:

b. Underlying Mortgage's MARGIN:

c. Maximum interest rate mortgage could adjust to:

D. What is the monthly payment on the underlying mortgage?

E. What is the remaining term of the underlying mortgage?

F. What is the interest rate of the underlying mortgage?

G. What is the balloon payment of the underlying mortgage?

2. If ADJUSTABLE:

a. Name of mortgage INDEX: b. Name of mortgage INDEX:

3. Have the mortgage terms been modified over the last 24 months?
Yes No If YES, How and Why?


4. Have the payments on the underlying mortgage been current
for the last 24 months? Yes No If NO, please list why?


IV. SPONSOR / HOLDER OF UNSOLD SHARES

a. Total # of units held:

b. Monthly maintenance:

c. Monthly rental income:

D. How many units are owner occupied

e. How many of the developer/sponsor owned units are vacant?

F. How many of the developer/sponsor owned units are rented at market rent?

G. How many of the developer/sponsor owned units are rented at a regulated
rent?

H. How many investor owned units are rented at a regulated rent?

I. How many investor owned units are rented at market rent?

J. How many investor owned units are vacant?


1. Has the Sponsor pledged any shares as collateral for other loans? Yes No
If YES, What is the monthly payment?

Who is the Lender?

2. Has the Sponsor been in arrears over 60 days
with in the last 24 months? Yes No

3. Is the Sponsor and/or holder of the unsold shares current
on all its obligations to the coop corp.? Yes No

Sales within the last six months in :
Unit# Shares Rooms Bedrms Baths Sale Price Sale Date


I/We represent that the above referenced information is true
and accurate as to the best of my knowledge.

Managing Agent Information
Date: Name:

Address: Phone:

Fax: By: Title:

 

[Glenn Redo]

It is has been my policy to never do the walk thru (inspection) of the cooperative unit until I have recieved the correct and properly filled out coop-form. I have done literally hundreds of coops. Dealing with the managing agents for cooperatives can be a nightmare. The minute you recieve the order you have to start pushing to get that form send to the managing agent/company along with whatever fees they charge to fill it out. Do not pay it yourself unless you are very sure you will recover your outlay. Also, it is important to ask on your form for recent sales (6 - 12 months at least) in the building also ask about other building in the area that they may manage. Good luck

 

[Mike Garrett RAA]

Can you say..."complex appraisal assignment"?

If you need to ask what form to use you probably shouldn't be doing the appraisal.

 

[Hal Mann]

Can you say..."complex appraisal assignment"?

While I would agree that a coop unit appraisal is more complex than an "ordinary" SFR, I wouldn't consider it a complex appraisal assignment.

The most difficult thing about coop units is that is ownership of shares rather than real property. As these sales are not recorded it complicates the search for comparables.

 

[Stone]

If you need to ask what form to use you probably shouldn't be doing the appraisal.

I don't think lack of knowledge as to what form lenders prefer for a type of property disqualifies someone from being capable of completing it. There may be other reasons why someone shouldn't do an appraisal on a specific type of proeprty, but not knowing which form a lender wants isn't automatically one, IMO.

 

[Mike Garrett RAA]

Fannie Mae created a form specifically for Co-ops. I have never done one and don't feel qualified to appraise them as, to the best of my knowledge, there are none in my market area and I have never even seen an appraisal on one. I will stand my ground in stating "if you don't even know what form to use, you probably are not qualified to do the appraisal."

 

[Walter Kirk]

Marty,
Where are you located? Are there lots of co-op's in your area? How much appraisal experience do you have?