Condo Appraisal Based On Plans

[Carnivore]

Seems like you misunderstood what I said. Every condo building in the area seem to be selling at a different rate even though the finish, location, amenities and utility remain consistent between every condo in the area. So how can I justify using any of these similar condos as comparables if they will all yield a different values for the subject for me depending on which one is used? .....you're all having trouble understanding that there is NO consistency in sale price between condo building that feature the same location, quality, finish, style, amenities, etc...

Well I will point out something for you to consider. This s not an easy one, but there is different types of data to look at.

I would take a hard look at rental rates in the all the projects including your subject. You might be surprised at what you will learn. Additionally you said all the others in bold above.; Hmmm OK, Now take a look at all the others and the subject project and see if you can find any substantive difference in Condo certs annual fees. You may have to Drill down on how parking is assigned. Is it owned, rented(lease, OR can the OWNER lease his space(s) to someone else. Are there storage facilities for individual units; are they owned or leased.

Take a hard look at the locations, you say they are the same but maybe not, VIEWS are important. I.E in my area(some not all) West side Units bring less money because of afternoon summer Sun/Heat is brutal. Conversely East side units can and often bring higher money. People like sitting on balcony in morning sipping cappuccino watching the morning sun rise and then at early evening they enjoy the cooler air as the sun sets roasting their neighbors across the hallway.
Another area to look at is Floor #, how many elevators. Take a hard look at Bldng Security.

The list goes on and on. Good Luck...Sounds like a $750-$1,000 dollar fee.

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added comment: From personal experience watch out for the COA NAZI's LOL

 

[Don Clark]

Well I will point out something for you to consider. This s not an easy one, but there is different types of data to look at.

I would take a hard look at rental rates in the all the projects including your subject. You might be surprised at what you will learn. Additionally you said all the others in bold above.; Hmmm OK, Now take a look at all the others and the subject project and see if you can find any substantive difference in Condo certs annual fees. You may have to Drill down on how parking is assigned. Is it owned, rented(lease, OR can the OWNER lease his space(s) to someone else. Are there storage facilities for individual units; are they owned or leased.

Take a hard look at the locations, you say they are the same but maybe not, VIEWS are important. I.E in my area(some not all) West side Units bring less money because of afternoon summer Sun/Heat is brutal. Conversely East side units can and often bring higher money. People like sitting on balcony in morning sipping cappuccino watching the morning sun rise and then at early evening they enjoy the cooler air as the sun sets roasting their neighbors across the hallway.
Another area to look at is Floor #, how many elevators. Take a hard look at Bldng Security.

The list goes on and on. Good Luck...Sounds like a $750-$1,000 dollar fee.

There seems to me to be a hint of a pre-determined opinion of value. So what if the only sales you have to consider are varied and wide in their value difference. Use them. Adjust for things such as the good comments you have received from many. I deal with very similar situations on a frequent basis, not just in condos but SFR's as well. If you can't do that, withdraw from the assignment.

 

[Carnivore]

Seems like you misunderstood what I said. Every condo building in the area seem to be selling at a different rate even though the finish, location, amenities and utility remain consistent between every condo in the area. So how can I justify using any of these similar condos as comparables if they will all yield a different values for the subject for me depending on which one is used? .....you're all having trouble understanding that there is NO consistency in sale price between condo building that feature the same location, quality, finish, style, amenities, etc...

Well I will point out something for you to consider. This s not an easy one, but there is different types of data to look at.

I would take a hard look at rental rates in the all the projects including your subject. You might be surprised at what you will learn. Additionally you said all the others in bold above.; Hmmm OK, Now take a look at all the others and the subject project and see if you can find any substantive difference in Condo certs annual fees. You may have to Drill down on how parking is assigned. Is it owned, rented(lease, OR can the OWNER lease his space(s) to someone else. Are there storage facilities for individual units; are they owned or leased.

Take a hard look at the locations, you say they are the same but maybe not, VIEWS are important. I.E in my area(some not all) West side Units bring less money because of afternoon summer Sun/Heat is brutal. Conversely East side units can and often bring higher money. People like sitting on balcony in morning sipping cappuccino watching the morning sun rise and then at early evening they enjoy the cooler air as the sun sets roasting their neighbors across the hallway.
Another area to look at is Floor #, how many elevators. Take a hard look at Bldng Security.

The list goes on and on. Good Luck...Sounds like a $750-$1,000 dollar fee.

There seems to me to be a hint of a pre-determined opinion of value. So what if the only sales you have to consider are varied and wide in their value difference. Use them. Adjust for things such as the good comments you have received from many. I deal with very similar situations on a frequent basis, not just in condos but SFR's as well. If you can't do that, withdraw from the assignment.

Our you commenting to me or the OP?

 

[Don Clark]

Well I will point out something for you to consider. This s not an easy one, but there is different types of data to look at.

I would take a hard look at rental rates in the all the projects including your subject. You might be surprised at what you will learn. Additionally you said all the others in bold above.; Hmmm OK, Now take a look at all the others and the subject project and see if you can find any substantive difference in Condo certs annual fees. You may have to Drill down on how parking is assigned. Is it owned, rented(lease, OR can the OWNER lease his space(s) to someone else. Are there storage facilities for individual units; are they owned or leased.

Take a hard look at the locations, you say they are the same but maybe not, VIEWS are important. I.E in my area(some not all) West side Units bring less money because of afternoon summer Sun/Heat is brutal. Conversely East side units can and often bring higher money. People like sitting on balcony in morning sipping cappuccino watching the morning sun rise and then at early evening they enjoy the cooler air as the sun sets roasting their neighbors across the hallway.
Another area to look at is Floor #, how many elevators. Take a hard look at Bldng Security.

The list goes on and on. Good Luck...Sounds like a $750-$1,000 dollar fee.

Our you commenting to me or the OP?

The OP. He eems to be locked in to the Subject Condo Complex sales as the market value instead of considering sales from other Condo projects

 

[Deleted member 130081]

Seems like you misunderstood what I said. Every condo building in the area seem to be selling at a different rate even though the finish, location, amenities and utility remain consistent between every condo in the area. So how can I justify using any of these similar condos as comparables if they will all yield a different values for the subject for me depending on which one is used? In the case of the city I live in, we always use at least 1-2 comparables from the subject building because they are the best indicators of what rate the subject unit should be valued at. So when I tell you there is 0 market data available to me from the subject building then it's because there has not been any sales in the building yet. I never said it's impossible to appraise, I just think any opinion of value derived for the subject by only using comparables from other buildings is not a strong opinion of cakev as it lacks actual data for the subject building as support. I'm not sure why you're all having trouble understanding that there is NO consistency in sale price between condo building that feature the same location, quality, finish, style, amenities, etc...

So that's what you tell your client my friend. You need to let them know that a plans and specs appraisal is limited, because the units have not yet been built and it is yet to be determined what they will eventually sell for. Then you use the competitive projects as your basis, but in this case, the value is all over the board. Of course its an educated guess with a wide range of variance possible, and that is exactly what you tell them it is. Tough crap if they don't like it, it is what it is. A real estate appraisal is an opinion supported with facts. So, develop an opinion and support it with facts. Anyone can pull a couple comps and throw out a value - computers do that every day. Now you are tasked with actually being a skilled appraiser, so go do it. Research, analyze, conclude, communicate your results, get paid. If you are not comfortable doing that, you need to withdraw.

 

[Webbed Feet]

This is a regular appraisal issues by an AVM for a standard fee. <...snip......>

Seems like you misunderstood what I said. <.....snip.....> I just think any opinion of value derived for the subject by only using comparables from other buildings is not a strong opinion of cakev <....snip....> I'm not sure why you're all having trouble understanding <...snip....> ..

I'm not sure either.....

 

[Tim The Enchanter]

Should have researched ahead and seen it was not a regular appraisal with a regular cheap fee.
But since you did not, suck it up and do the job the right way anyway.
Or Angry Girl will find your reputation.