Co-op maintenance adjustments

[Eli Weiss]

Assessments are usually listed on top of the MM and are short term, thus it has no market recognition....
Tax deductions on the MM are a minor difference, and I wont adjust for minor differences on MM either....
It's not me who makes the call, it's the market....

I am working as we speak on the other screen on a co-op on Riverside Drive in the Upper West Side, all my comps are outside the subject project, they have a similar room count and GLA, and somehow they all have a max $100 difference on the MM.....
In such case I'm good with no adjustments....

Typically smaller projects have a higher MM, because there are less units to pick up the common fees.....

MBD, is your companies formula similar to what I have described?

 

[MBD]

Eli, the company I am with now does the adjustment the same way that you do.

I turned in an co-op appraisal in Park Slope today, afterwards me and the owner were discussing our methodologies for a while.

I understand Kevin's logic, but I just feel that the reason that the form requests the comp's MM is that the client expects an adjustment if there is a recognized difference in the marketplace.

 

[Kevin Mc]

I have been going round and round with this one for years. Where did this formula come from and what is the logic behind it? Again, unless you know every single detail of your comparables financials "the method" has no legs.