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Condo appraisal - Adjustment for amenities?

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Appraisal Santa Fe

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Sophomore Member
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Mar 27, 2008
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Certified Residential Appraiser
State
New Mexico
I'm doing an appraisal of a condo unit in a compound that has a full golf course, tennis, swimming pools and athletic facilities. There are no other complexes out there with similar amenities. I have plenty of comparables in
the compound but outside of it there are none with any of these amenities.
Can I do an adjustment for amenities and how the heck can I come to any sort of number for that since there is nothing similar in the area?

Thanks

RC
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
... I have plenty of comparables in
the compound but outside of it there are none with any of these amenities.
Can I do an adjustment for amenities and how the heck can I come to any sort of number for that since there is nothing similar in the area?

QUOTE]


So why do you have to go outside of the Subject's project for sold comparisons?

If you have to go outside...and if the single significant difference between projects is the amenities within the Subject's project lacking in other projects...I would think that the dollar adjustment would be apparent.
 

Appraisal Santa Fe

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Sophomore Member
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Mar 27, 2008
Professional Status
Certified Residential Appraiser
State
New Mexico
I like to include a comp outside of the subject's neighborhood in any appraisal, but values appear to be all over the place outside the complex and no other complex has the amenities to try to extrapolate data from.
 

leelansford

Elite Member
Joined
Mar 29, 2002
Professional Status
Certified Residential Appraiser
State
Illinois
If the Subject's project has a l-o-n-g re-sale history, why bother (unless it is a client requirement) to include additional sold comparisons from outside of the project?
 

tyfsu

Freshman Member
Joined
Jul 11, 2007
Professional Status
Certified Residential Appraiser
State
Florida
I'm doing an appraisal of a condo unit in a compound that has a full golf course, tennis, swimming pools and athletic facilities. There are no other complexes out there with similar amenities. I have plenty of comparables in
the compound but outside of it there are none with any of these amenities.
Can I do an adjustment for amenities and how the heck can I come to any sort of number for that since there is nothing similar in the area?

Thanks

RC

Is this a new construction condo? Is the client requiring one comparable outside of the development? Why are you going outside of the development? If you must include a comparable outside of the development then find a comparable that is similar in all other features (i.e.: bed/bath count, square footage, condition, yada yada yada) and the difference will be your amenities adjustment. probably going to be a large adjustment so you may not want to consider using this as a comparable if you really don't have too.
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
Resales from within a subject's project should always be the best indicator of value. When there is not necessary reason to leave the project, you should not. An established project is any that has resale activity. So if you are in a new project that has 1 resale, it is established and your best option, if possible, would be to use two from the builder and the resale.

If all else fails and it ends up being a matter of going to another project, I'll make a locaton adjustment if one project is preferred over the other and will not make an amenity adjustment. It is common for the monthly fees to be higher for superior amenities. I leave those two alone and have very rarely (if every) made an adjustment on those lines.
 

TITAN1

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Joined
Jan 2, 2008
Professional Status
Certified Residential Appraiser
State
Florida
" It is common for the monthly fees to be higher for superior amenities. I leave those two alone and have very rarely (if every) made an adjustment on those lines. "

Well said!
If the subject has superior ammenites and you consider an adjustment is warranted, then should you not consider a downward adjustment for the subject for the higher monthly fee's to pay for the ammenities? It is what it is. If the comp outside the project with no ammenities is selling for the same price as the subject, there is no adjustment or possibly the comp with no ammenities has a great ocean view with more market value than the ammenities of the subject?
 

Appraisal Santa Fe

Thread Starter
Sophomore Member
Joined
Mar 27, 2008
Professional Status
Certified Residential Appraiser
State
New Mexico
Thanks all for the replies, that helped.

RC
 
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