Condominium Questionnaire

[Ariba]

Just curious of what relevance the Condominium Questionnaire has on the opinion of market value? With more and more HOA charging for even the basic information ($100 to $250) how do you handle this when the information is not forth coming? Do you put unknown on the 1073 Form? For example: total number of units rented in the project, how many units are delinquent, number of parking spaces, involvement in any litigation, percent of retail, etc. IMHO this is a lender issue and has nothing to do with opinion of market value. In the normal course of business does your client/lender provide the Condominium Questionnaire to you?

 

[Terrel L. Shields]

No, I would not put unknown on it. I would explain to the client what the issue is and why you need a copy of the info. The bank may be able to exert pressure on the HOA's to get a copy. Or tell them you have to add the fees from the HOA onto the appraisal.

I would think that the delinquency and litigations issues most certainly impact the value of the property. I suggest you get the item or withdraw from the assignment.

 

[Tim The Enchanter]

Litigation can have an effect on market value. I hate when they say yes to my Q, is there litigation.
I never see docs from the client, they want me to ask the HOA manager about that stuff.
I suppose they compare the info I got to the questionaire later.

 

[Randolph Kinney]

I have a credit union client that gives this information to me at the time the appraisal is ordered. No other lender does this.

 

[TRESinc]

i almost never get the info from my clients, however they all do pay me the additional fee to obtain the info (if there is one) or they send me an edited partial screen shot of another appraisal in the development with the info. it may not have an impact on the OMV but it is an integral part of the appraisal. i have one client who will not loan on a condo if there are more than 10% being used as rentals. remember the lenders look at more than just the number at the bottom of your report.

 

[bnmappraisal]

remember the lenders look at more than just the number at the bottom of your report.

Well ... SOME lenders... haha

In the normal course of business does your client/lender provide the Condominium Questionnaire to you?

I have a lot of condo's in my market. I generally ask the client (typically an AMC) immediately after accepting the assignment if they have a condo questionnaire. Most put in a request to the lender right away, but I will say, it definitely holds up the report trying to get this information filled out. Although generally speaking, the # of units rented may or may not have any affect on our OMV, as TRESinc points out, it may have an affect on the lender/UW's decision to make the loan.

So I understand the "reason" behind getting this info, but I personally find it very annoying and many times like trying to pull teeth. MANY of the condo management companies charge for this info and won't budge. This is typically what holds up condo reports for me, anyway. Sometimes for 2-3 weeks!

 

[Ariba]

This was a recent response I received from an AMC when I requested the Condo Questionnaire, "this client does not allow us to ask for the condo questionnaire. Us meaning the AMC.

 

[Ariba]

Well ... SOME lenders... haha


I have a lot of condo's in my market. I generally ask the client (typically an AMC) immediately after accepting the assignment if they have a condo questionnaire. Most put in a request to the lender right away, but I will say, it definitely holds up the report trying to get this information filled out. Although generally speaking, the # of units rented may or may not have any affect on our OMV, as TRESinc points out, it may have an affect on the lender/UW's decision to make the loan.

So I understand the "reason" behind getting this info, but I personally find it very annoying and many times like trying to pull teeth. MANY of the condo management companies charge for this info and won't budge. This is typically what holds up condo reports for me, anyway. Sometimes for 2-3 weeks!

So comparing apples to apples, do you request the Condominium Questionnaire from each HOA if the comparable in your appraisal report are from different complexes/buildings?

 

[bnmappraisal]

This was a recent response I received from an AMC when I requested the Condo Questionnaire, "this client does not allow us to ask for the condo questionnaire.

I would just tell them:
Ok, I need to get this information in order to complete the report and it is going to take (insert estimated time frame) to get that info.

If the condo mgt company requires a fee to obtain this info, I would make sure the AMC is going to pay that (even if it's just adding to you original fee, which some of my clients do)
If the AMC says it has to come out of your end I would definitely walk away from the assignment (me personally)

 

[bnmappraisal]

So comparing apples to apples, do you request the Condominium Questionnaire from each HOA if the comparable in your appraisal report are from different complexes/buildings?

No, I never have. The bottom of pg 1 of the 1073 is requesting info from the SUBJECT project/complex/phase. IF the subject is phase 1 our of 5, then I do contact the HOA/condo mgmt. company and try to gain as much info regarding the ENTIRE complex as possible. Again, this definitely takes time and sometimes "sweet talking" to the condo mgmt. company.

Worst case, if they WILL NOT give up the information, I write a decent narrative explaining who I spoke with, when (typically just day/date works) and what the outcome was (i.e. I called ABC mgmt. on XX/XX and spoke with **** ....) and explain what you did/asked for and the response/outcome of that conversation.

But generally, I try to use units from within the immediate complex (even if having to "go back" 1 yr) for comps.