J Grant
Elite Member
- Joined
- Dec 9, 2003
- Professional Status
- Certified Residential Appraiser
- State
- Florida
I've been getting these new construction hard money loan appraisals on 2 Family and three family dwelings that are being built with the intention of each unit being sold as condo units
The above is from the OP post.
Even if a building is made into condo units, the cost to construct as if new still includes cost of the land it sits on - the developer paid for the land, correct? The fact that indiviudal units are made into condos and sell for their own price points is a different issue. It costs the same to build a 3000 sf structure, a 2-unit building on an X-size lot of land, regardless of whether the developer sells the units as condos, rents the units, or sells the units as fee simple.
It costs 300k to acquire a certain site. It costs, for example, 500k to construct an X-size building of Y # units regardless of whether I, as a developer, plan to rent the units, sell them as fee simple, or sell them as condo units.
The above is from the OP post.
Even if a building is made into condo units, the cost to construct as if new still includes cost of the land it sits on - the developer paid for the land, correct? The fact that indiviudal units are made into condos and sell for their own price points is a different issue. It costs the same to build a 3000 sf structure, a 2-unit building on an X-size lot of land, regardless of whether the developer sells the units as condos, rents the units, or sells the units as fee simple.
It costs 300k to acquire a certain site. It costs, for example, 500k to construct an X-size building of Y # units regardless of whether I, as a developer, plan to rent the units, sell them as fee simple, or sell them as condo units.
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