Airstream
Junior Member
- Joined
- Mar 27, 2022
- Professional Status
- Certified Residential Appraiser
- State
- Wisconsin
I am doing an appraisal for a legal proceeding. It is kind of strange. So here is the explanation. Just wondering how you would handle this?
1. A builder bought a condominium when it was being built and he himself finished the interior he put in wood floors (2nd floor condominium). He says that he did this in good faith and pleads ignorance to the HOA rules that state that no wood floors can be used on second floor condominiums. He also put in a lot of other upgrades, etc. That was about 20 years ago.
2. When he just sold the unit, he sold it for less than what he thought he should get for it because the condominium complex forced him to disclose to the new buyers they would have to put in carpet and NOT have wood flooring. The estimates ranged from 15,000 to 30,000 for carpeting.
3. He is suing the condominium for what he considers to be the sale value difference of a condominium with wood flooring and what he finally had to sell the condominium for.
4. The problem of course is there are NO OTHER units that ever-had wood flooring in the complex. So doing a market sensitivity analysis from within the complex is a non-starter.
5. I talked to the realtor that sold the property, and she said another issue that buyers had was the fact the seller turned the one car garage into another bedroom. This is a second story unit. There was no bathroom on the same level as the garage. AND it eliminated storage area for things like bikes, golf carts, etc. This is a recreational area and people store all that stuff in their garage. In fact, the buyers are converting the bedroom back into a garage with estimates of about 40,000.
Here are my conclusions so far:
1. Not possible to really determine market value difference from wood to carpet since there is no real data within the complex. I’ve done a number of appraisals of units in this complex.
2. The main issue with the property is the functional obsolescence the seller created by turning the garage into living space and thus putting major constraint on convenient storage.
Did I miss anything? Any suggestions?
1. A builder bought a condominium when it was being built and he himself finished the interior he put in wood floors (2nd floor condominium). He says that he did this in good faith and pleads ignorance to the HOA rules that state that no wood floors can be used on second floor condominiums. He also put in a lot of other upgrades, etc. That was about 20 years ago.
2. When he just sold the unit, he sold it for less than what he thought he should get for it because the condominium complex forced him to disclose to the new buyers they would have to put in carpet and NOT have wood flooring. The estimates ranged from 15,000 to 30,000 for carpeting.
3. He is suing the condominium for what he considers to be the sale value difference of a condominium with wood flooring and what he finally had to sell the condominium for.
4. The problem of course is there are NO OTHER units that ever-had wood flooring in the complex. So doing a market sensitivity analysis from within the complex is a non-starter.
5. I talked to the realtor that sold the property, and she said another issue that buyers had was the fact the seller turned the one car garage into another bedroom. This is a second story unit. There was no bathroom on the same level as the garage. AND it eliminated storage area for things like bikes, golf carts, etc. This is a recreational area and people store all that stuff in their garage. In fact, the buyers are converting the bedroom back into a garage with estimates of about 40,000.
Here are my conclusions so far:
1. Not possible to really determine market value difference from wood to carpet since there is no real data within the complex. I’ve done a number of appraisals of units in this complex.
2. The main issue with the property is the functional obsolescence the seller created by turning the garage into living space and thus putting major constraint on convenient storage.
Did I miss anything? Any suggestions?
