Condominium (wood vs carpet)

[Airstream]

Reminds me few years ago. I suspected a roof leak so HOA sent roof contractor.
If there was a leak, HOA would have fixed it.
Since no leak, I had to paid for inspection service. I didn't know that or I didn't read the condo docs. It cost $500 from the roofer. WTF.
So I went to the board meeting and we split the cost.
HOA board has discretion.

$500 is a no brainer. 50,000 not so much.

 

[Fernando]

$500 is a no brainer. 50,000 not so much.

$50,000 is a lot. Sounds like Trump's way of negotiating being extreme in initial demands.
HOA has a strong case but it's a business decision when lawyer fees are involved.

 

[glenn walker]

Sounds like everyone will be sueing everyone. But if I'm the builder I'm going down in bankruptcy, but even the HOA hired gun appraisers going down with me...lmao

 

[Fernando]

If buyer wants wood floors so badly, HOA should allow the unit above to also have wood floors.
Then the buyer after hearing all that foot noise will agree for everyone in the complex to have carpets.

 

[Surf Cat]

The issue is the wood floors.

The wood floors versus carpeting is the least of your worries. You're putting so much emphasis on the flooring material in trying to find comparables for a market reaction with the different flooring...... you're wasting your time here. Especially, since wooden floors are not allowed in the subject complex's declarations. So, it becomes a cost to cure issue. If you don't have a cost guide such as Craftsman or Marshall and Swift, go to www.homewyse.com, enter your ZIP code, and get a free estimate on how much it would take to put carpet in that second level.

Whether the garage was there or not isn’t the entire issue.

The converted garage, in a condominium complex which has declarations IS your major issue. If this was an SFR, you would have a lot more luck finding a market reaction to non-premitted addition / alterations. Just like the carpet issue, you are NOT going to find a condominium sale with a major non-premitted alteration. Your best bet is to find a fixer or two.

Again, it becomes a cost to cure issue. The conversion back to its original intended use is going to be a lot harder to estimate. The Craftsman cost guide or Marshall and Swift would do a lot better then Homewyse here.

On both the carpet and garage conversion estimates, you're also going to have to include an entrepreneurial incentive % that's typical in your area to take the projects on. The proof of the cost estimates and the entrepreneurial incentive is the sale of the condominium itself well below the other sales within the complex. You're just going to have to lay that all out in the appraisal. Complex assignment on top of legal proceedings. I hope you are charging accordingly and gave them your hourly rate to be in court.

Good luck.

 

[JTip]

Ignorance is bliss, till they take your bliss away.

 

[KHS445]

In my opinion, if the builder had put in carpet 20 years ago it would be close to its end of life and most likely the buyer would have replaced it sooner than later. I think the buyer was smart and used the wood flooring as a negotiating tool. The garage conversation is probably a bigger deal, but I am not sure that the cost to cure equates to a dollar for dollar gain or loss to the market value.

The costs being quoted are for brand new carpet and brand new improvements, both of which will most likely be of higher quality workmanship and materials than what would have been put in place 20 years ago. The builder had the option of installing carpeting and reconfiguring the bedroom/garage/storage area. Would have cost him significantly less than what the buyer will have to pay to get the work completed.

Reminds of the kid that kills his parents and asks for mercy from the Court because he is an orphan. The builder has the problems he has due solely to his own actions.

 

[Tom D]

Very interesting, but i don't understand what is being needed to determine what. I understand the non appoved upgrades part, but what am i, the appraiser, trying to figure out

I must be one of those dumb jury people who's thinking, what did he just say.

 

[glenn walker]

Very interesting, but i don't understand what is being needed to determine what. I understand the non appoved upgrades part, but what am i, the appraiser, trying to figure out

I must be one of those dumb jury people who's thinking, what did he just say.

The appraiser needs to get it all down because if he gets subpoena for a court or deposition the first thing is what role are you playing ?

Are you a remodeling and construction expert ? What's your SOW and what instructions did your HOA Client give to you ? Is the new buyers involved in the litigation ? Please Identify what your role is ?

Finally are you really becoming an Advocate for the HOA who are the plaintiffs ? Not being a smart Azz I just have no idea where $30,000 carpeting and no wood flooring allowed has gone this far.

 

[Mark K]

I don't see how either issue (garage and flooring) can be anything but cost-to-cure.

If it goes to court I can almost promise you that the judge and jury will see it that way.