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First Time Condominium Report

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Yellow Fin

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Feb 27, 2003
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Certified Residential Appraiser
State
California
Well, I've been doing regular residential full reports about a month and just got the first 'Condominium Full Report Order.' My inspection schedule is tomorrow morning 10 Am. I can't sleep now.

What shall I look for inspection?
What shall I prepared before inspection?
Which forms shall I use for Alamode?

Can anybody give me the sample report for condominium so I can use it as a reference? :p

The subject is in Berkeley, CA.
Good night~
<Daniel>
 

Carnivore

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Jan 15, 2002
Professional Status
Certified Residential Appraiser
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North Carolina
OK, where do I start, hmmm

Things that are important:

1. Special assessments
2. HOA fees and what it pays for
3. Are there any leased elements to the HOA
4. What are the bennies for this HOA
5. Who controls the HOA
6. Owner/renter occupied percentages
7. WARNING: High renter percentages will absolutely destroy any claim you may have that the income approach is not applicable in the event of a review.
8. Is the HOA effective.
9. Are the fees adequate and competitive in the market.

ect
ect
ect

I have not even got to the subject yet. Our you competent in this market?

Good luck
 

Walter Kirk

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Jun 24, 2003
Professional Status
Licensed Appraiser
State
New Jersey
Henry Harrison publishes a book on condominium reports> I would get that book and follow his example line by line.
 

Yellow Fin

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Feb 27, 2003
Professional Status
Certified Residential Appraiser
State
California
Thank you, I copied down all the questions.
I am a trainee and this is the first assignment without a supervisor on the shoulder.

I feel like I am driving a car alone on the freeway when I first got the driver's license. I am nervous, but excited about it.

<Daniel>
 

Em Tee

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Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
California
When you're finding comps, be sure to get one outside of the subject's project. Underwriters always seem to want one of those!
 

Farm Gal

Elite Member
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Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Daniel...

It is my opinion that competency on a condo is different than competency on a SFD.

You are probably quite capable of measuring the thing... you DO know the proper measurement technique for a condo right? (This is a trick question.)

The form is different and the INTENT of the form is somewhat different.

Make sure you have adequate supervision to insure competency.


AND

I haven't done a condo report in a coons age...
but if I remember correctly you will still need to count the parking spaces... this is easier done when you are there than back at your desk :unsure:


You will establish other bits of info as referred to above. Make SURE you know who the head of the HOA is... and I would also make sure you have access to the condo documents. Which by the way is occasioanlly a PROBLEM.
 

Chris Colston

Elite Member
Joined
Jul 24, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Originally posted by Daniel An@Aug 22 2003, 10:36 AM
I am a trainee and this is the first assignment without a supervisor on the shoulder.

Perhaps your supervisor SHOULD still be over your shoulder.

Most of the condo info about the project can usually be obtained by calling :( a member of the board of directors or the management company. Ask the person who gives you access for the appropriate number so you can find out the percentage (or exact number) of rentals to owner/residents, the number of parking spaces, if they are owned or assigned and how many are guest spaces.

Are there any SPECIAL ASSESSMENTS, for what and when will they be expected t be paid off. If this is a purchase the lender will most likely require any special assessment to be paid of prior to closing.

Are any of the units or common areas rented back to the association?

ALAMODE has the FannieMae condo form in it's software. Take at look at it and you will know what you need to find out.

Many underwriters still ask for an outside comp, although that is old school. Just have one ready to stick in the report if you need it.

If this is a purchase, do you have the purchase agreement and does it include furniture?? I saw one trick question about measuring the unit. Here's another, what do you do about the comps if they sold furnished?

Does your market recognize a floor adjustment or an adjustment for end unit vs inside unit? Is this an age restricted project?

LOTS of questions :mrgreen: and you still haven't even gotten into your car. :eek:
 

Farm Gal

Elite Member
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Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Chris:

You missed value for view, are upper units (highrise) more valuable if they face the bay or the hills...


etc etc etc.
 

Yellow Fin

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Joined
Feb 27, 2003
Professional Status
Certified Residential Appraiser
State
California
I got back from the inspection.
I took a lot of photos just in case the client requests. :D

I found four comps, three in the same unit and one is detached from the unit.
Three are '700 xxxxxx st, Berkeley, CA', the other one is '702 xxxxx st, Berkeley, CA.'

I got an access to get the HOA document or booklet. I am going to see it tomorrow morning. I also got the contract paper, too. I was really nervous and excited.

Soon as I got home, I had a call,,,,, he said, 'we got another condo in San Jose,,,,'. :twisted:

Thank you everybody and have a great weekend!
<Daniel>
 

Chris Colston

Elite Member
Joined
Jul 24, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Originally posted by Lee Ann@Aug 22 2003, 05:34 PM

You missed value for view, are upper units (highrise) more valuable if they face the bay or the hills...


I didn't "miss" it. There are some things he's gonna have to discover for himself. :p :mrgreen:
 
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