• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Cooperative - what to do different than a condo?

Status
Not open for further replies.

Tim The Enchanter

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Better than 11 years, and I've done all kinds of funky properties. Well, I guess not ALL kinds. Until now I've never had to do a co-op. Plenty of condos, but there's hardly any coops around here.

Anything I need to look out for different? Differences in marketability?
I guess they must have an HOA, by some name anyway.
I know the form of ownership is different from condo. Obviously the best / real, if not only comps, will be in my project (in Glendale). :?
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I have never appraised a co-op either. Ownership isn't fee simple. The ownership is of stock in a corporation that owns the property. I would have to decline the assignment.
 
A

Anonymous

Guest
A co-op is a different animal, don't confuse it with a condo. In a co-op the owner only owns stock in the project and has in effect a lease on his unit. The owner may be liable not only for the mortgage on his own stock but also for any underlying mortgage on the complex as well as co-op fees.
Co-ops may also restrict ownership to members of groups (Religion, Professional, Social), or by age, thus restricting marketability.

Don't make the mistake of comparing a co-op to any other form of ownership. If your market area doesn,t have several co-op projects with lots of comparable sales turn the assignment down. There are appraisers who do lots of co-ops (most of these being in New York City).
 

Tim The Enchanter

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Don't make the mistake of comparing a co-op to any other form of ownership.

I realize that. Co-op comps only. Thanks guys. I was afraid there would be a lack of comps, and wondering if there was much to do different other than the bold face type saying "COOP NOT CONDO" :) . Doesn't look like it so far. The plat map has the unit dimensions just like condos in LA County. And Luckily there are a couple comps in my building, and a few right in the area in Glendale. Who knew. :lol:

Almost time to go see it. :wink:
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
Lee,
Be careful of your comparables, some COOP's limit the amount you can sell your stocks (unit) for. These are the "affordable housing" type COOP's. Also Check for land lease, and the health of the "blanket financing" that most COOP's have. Big issues on marketability.
 

Tim The Enchanter

Elite Member
Joined
Jan 24, 2002
Professional Status
Certified Residential Appraiser
State
California
Good thoughts Frederick. Now I find out the thing has been converted to condos. :lol: Guess I still haven't done a coop.
 

xmrdfghap

Senior Member
Joined
Jan 15, 2002
Professional Status
General Public
State
Florida
And here I was going to tell you about a commune......but looks like yourprob is solved.......so never mind
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks