Condo common area appraisal

[Galaxy]

It is rare, but condominiums can sell common area, which is what was proposed in this case. As noted in some previous posts, calling the new space a limited common element, for exclusive use by an owner (as is done with storage rooms) is an alternative solution they should consider. But going the property sale route, the task remains to appraise this small piece of real estate.

One idea I thought of: stairs are a basic component of a home, and don't have any "add-on" value. They might be thought of as the base value or core value of a home, just like the walls, roof, support structure, etc., given of course its location, size, etc. Therefore, if you remove the add-on components (e.g., 7% for roof deck, 10% for extra bedrooms or baths, etc) you would end up with the base value ($/sf). You could do the same exercise by taking average value of nearby homes with no "add-on's," but such homes may be hard to find, whereas the subtraction method on the target home might be more accurate. ??

 

[J Grant]

It is rare, but condominiums can sell common area, which is what was proposed in this case. As noted in some previous posts, calling the new space a limited common element, for exclusive use by an owner (as is done with storage rooms) is an alternative solution they should consider. But going the property sale route, the task remains to appraise this small piece of real estate.

One idea I thought of: stairs are a basic component of a home, and don't have any "add-on" value. They might be thought of as the base value or core value of a home, just like the walls, roof, support structure, etc., given of course its location, size, etc. Therefore, if you remove the add-on components (e.g., 7% for roof deck, 10% for extra bedrooms or baths, etc) you would end up with the base value ($/sf). You could do the same exercise by taking average value of nearby homes with no "add-on's," but such homes may be hard to find, whereas the subtraction method on the target home might be more accurate. ??

Imo decline this assignment, there is no good way to do it as you propose , there could be a value approach but perhaps too complex to develop wrt to competence or what they would pay to do it..

It does not sound credible to separate out a basic building component needed for structural integrity and devise a formula and say it is worth X because it is y% of the total dwelling.

Your posts 14 and 15- are the stairs needed to connect the two floors / combine two separate units into a one larger unit? If that is the case, and no other way to connect the two units into one, then THAT is the value.- (personal, between these parties ) - aka If the condo does not sell the stairs, the plans of the owner to combine two units into one larger living unit can not happen?

The stairs are a common element owned after agreement to sever the common element would need to show that in the condo docs and be recorded to prove the sale -an additional expense legal costs to re write the condo docs, file and get it approved and inspected. Last thing you want is for them to not do that properly in case it is contested at some point or an insurance or fire code issue be present- imo, too many unknown aspects that might not surface till later.

 

[glenn walker]

The Village Idiots cannot transfer title to a stair-case. They simply need to draw up an-agreement like a staircase rental or lease agreement that lays out the terms of use, and for long long and what constituents the end of the use. Where the big issues hit them is upon the sale of the unit the staircase belongs to. Is a new owner going to go along with this ?

We have owned apartments where tenants did things like this, one time we had a tenant who, rented out his garage space to another adjacent tenant for two years. They even had a garage rental agreement between them. The Tenant -A decides to move and we re-rent it which included use of a two car garage. The new tenant calls and says there is a Car in the garage and the tenant above her says thats Her extra space the previous tenant had rented to her and she had 14 months remaining on her use of it. A Nightmare. We had one where every 4-units shared one common laundry room and machines, and one apparently used the laundromat and did not need her key or access, so she rented her use to an-adjacent tenant in another building for $15.00 a month. That was fine until the tenant moved out and we re-leased her unit and suddenly the tenant across the way says- she pays to use that laundry and doesn't want our tenant using it. These dunderheads make all sorts of inside agreements between themselves but never think about the consequences when one moves out or if the building gets sold to a new owner. The list of stupidly goes on and on.

With that being said my first question to the ( Stair-Case Sellers ) IS WHO OWNS IT WHEN A UNIT-GETS SOLD ? That stair-case belongs to one or all of the owners and is part of the real estate and upon a sale, what if the new owner says BS I want my staircase and its legally mine ? These are the kinds of issues small minds do not think about until something goes south. Then one day a guy like me purchases the unit and says hey thats mine or our staircase and you have no right to use it. The dunderheads says no I purchased from eh other two Village Idiots two years ago for $3,000.00 and its now mine. Sure show me where on Title it shows you own it ? And nobody have the right to sell it to you because its a freaking staircase that is necessary and required to get to the upper level unit, and did you get authorization from the HOA ? Did you record a Stair Case easement ? NO you did nothing correctly and now you are going to have your Stair-Case sale revoked by me : ) LMAO

 

[Galaxy]

The Village Idiots cannot transfer title to a stair-case. They simply need to draw up an-agreement like a staircase rental or lease agreement that lays out the terms of use, and for long long and what constituents the end of the use. Where the big issues hit them is upon the sale of the unit the staircase belongs to. Is a new owner going to go along with this ?

We have owned apartments where tenants did things like this, one time we had a tenant who, rented out his garage space to another adjacent tenant for two years. They even had a garage rental agreement between them. The Tenant -A decides to move and we re-rent it which included use of a two car garage. The new tenant calls and says there is a Car in the garage and the tenant above her says thats Her extra space the previous tenant had rented to her and she had 14 months remaining on her use of it. A Nightmare. We had one where every 4-units shared one common laundry room and machines, and one apparently used the laundromat and did not need her key or access, so she rented her use to an-adjacent tenant in another building for $15.00 a month. That was fine until the tenant moved out and we re-leased her unit and suddenly the tenant across the way says- she pays to use that laundry and doesn't want our tenant using it. These dunderheads make all sorts of inside agreements between themselves but never think about the consequences when one moves out or if the building gets sold to a new owner. The list of stupidly goes on and on.

With that being said my first question to the ( Stair-Case Sellers ) IS WHO OWNS IT WHEN A UNIT-GETS SOLD ? That stair-case belongs to one or all of the owners and is part of the real estate and upon a sale, what if the new owner says BS I want my staircase and its legally mine ? These are the kinds of issues small minds do not think about until something goes south. Then one day a guy like me purchases the unit and says hey thats mine or our staircase and you have no right to use it. The dunderheads says no I purchased from eh other two Village Idiots two years ago for $3,000.00 and its now mine. Sure show me where on Title it shows you own it ? And nobody have the right to sell it to you because its a freaking staircase that is necessary and required to get to the upper level unit, and did you get authorization from the HOA ? Did you record a Stair Case easement ? NO you did nothing correctly and now you are going to have your Stair-Case sale revoked by me : ) LMAO

Thanks for sharing that personal experience. I completely understand. The state condo law does allow reallocation of unit boundaries by amendment. This is what the owners are proposing. The unit owner receiving the staircase will own it, after that amendment is made. It will all be documented in city records, legally. The owners will decide amongst themselves what compensation is made, if any, for transferring this property from common area to unit property. They asked for an appraiser to advise on valuation of transferred property. I am only asking this forum for advice on how to appraise a component of a home instead of the full package. It is starting to sound like that is never done, which is fine if that is the answer.

 

[J Grant]

There have been times I've told people that they did not need an appraisal, willing to forgo a fee instead of trying to make $ from a weird situation where it made no sense. They might appreciate it and refer you later if you do a more ethical thing and suggest to these folks they first try to negotiate whatever seems fair to them.

From what I understand, the other owners have no use or utility for this staircase so its loss as a common element does not affect them - but if it is a loss to them in building value and utility, that is another matter. with no photos or visuals of it impossible to tell. You can suggest they ask the buyer to make an offer and if all agree, fine, . If not, they would at that point need an appraisal using whatever method they agree to accept and is credible (what that is idk except a case study of condos that likely is too expensive -

 

[glenn walker]

You can't fix stupid : )