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Help on a Cooperative Appraisal

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Surf Cat

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Junior Member
Joined
Apr 21, 2003
Professional Status
Certified Residential Appraiser
State
California
I'm appraising my first cooperative unit. I found sales in the building on the MLS but can't seem to verify them on public records. How do you go about getting and verifying the right comps for a coop? What else is different from a condo and important to know?

Thanks!
 

Mike Kennedy

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Sep 28, 2003
Professional Status
Certified Residential Appraiser
State
New York
http://www.appraisalinstitute.com/store/p-57-cooperative-apartment-appraisal.aspx

PLUS:

keys:
Cooperative A type of ownership of property. This is when the individual unit owners own shares in the cooperative building and do not own the actual property. The amount of shares owned is determined by the value and size of the apartment. The cooperative building owns all of the units and the purchaser is buying stock in the building.

Cooperative Apartment: One of a number of units, usually residential in nature, which are owned by a Cooperative corporation. Each apartment owner is issued shares of stock in the Cooperative corporation representing their proportionate interest in the corporation based upon the size and value of their apartment. In addition to shares of stock in the corporation, each apartment owner is given a proprietary lease which provides them with the right to inhabit a particular apartment.
Cooperative Corporation: A specially chartered corporation, the purpose of which is restricted to the ownership of real eastate. The corporation issues shares of stock to each shareholder representing their proportionate interest in the corporation based upon the size or value of their apartment. Each shareholder is issued a certificate evidencing the number of shares issued to them. As a benefit of being a shareholder, they are also issued a proprietary lease for their particular apartment. The proprietary lease provides them with specific rights as a tenant of the cooperative corporation, permitted to live in the apartment.




Co-Op Mgmt Company or Board data source also see co-op questionaire form in your software.

Best recommendation: take a course or 3
 
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Lost Cause

Senior Member
Joined
Sep 17, 2004
Professional Status
Certified General Appraiser
State
New York
Many jurisdictions (and I have no idea how yours operates) do not classify coops as real property and do not include them in the public record. Here in NY, they only recently started including coop sales info in the public record.

Mr. Kennedy's suggestion to check with the coop management company is an excellent one.
 

Kevin Mc

Elite Member
Joined
Jun 7, 2004
Professional Status
Certified Residential Appraiser
State
New York
I'm appraising my first cooperative unit. I found sales in the building on the MLS but can't seem to verify them on public records. How do you go about getting and verifying the right comps for a coop? What else is different from a condo and important to know?

Thanks!

Thaey are two different forms of ownership and most likely you will not find cooperatives sales in public records. Management company should be able to confirm your sales. What does your mentor suggest?
 

VolcanoLvr

Senior Member
Joined
Oct 30, 2003
Professional Status
Certified Residential Appraiser
State
Washington
Be sure to use the proper Co-op form if this is a typical lending assignment.

a la mode has the Co-op form in the forms list. I presume the other software providers do also.

If this truly is a Co-op, and not a condo, it should not be done on a 1004 form. Condo, use the 1073 form. (I don't know the Co-op form #, as we don't have those critters in the frozen northwest.)
 

Surf Cat

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Apr 21, 2003
Professional Status
Certified Residential Appraiser
State
California
Thank you for your replies everyone. Actually, these questions are for my mentor whom has not performed a co-op appraisal in 15 years. He knew I belonged to this forum and asked me for the favor to throw it up here. A couple more questions if I may.

What's the relevence between the number of shares between the subject and the comparables? (if you already know all the units GLA). Are adjustments necessary for this?

Or, are the adjustments solely based on the differences in physical characteristics as in a condo appraisal?

Thanks again.
 

Edward OConor

Member
Joined
Apr 27, 2006
Professional Status
Certified Residential Appraiser
State
New York
Thank you for your replies everyone. Actually, these questions are for my mentor whom has not performed a co-op appraisal in 15 years. He knew I belonged to this forum and asked me for the favor to throw it up here. A couple more questions if I may.

What's the relevence between the number of shares between the subject and the comparables? (if you already know all the units GLA). Are adjustments necessary for this?

Or, are the adjustments solely based on the differences in physical characteristics as in a condo appraisal?

Thanks again.

The number of shares is mostly subjective and decided by the sponsor. This could include almost anything size, floor, view, distance from elevator etc.

I would not adjust for # shares. I might adjust for maintenance fees but not shares.

Don't forget your outside sale.

The old coop form has is a good start as a request for information but it doesn't cover it all.
 
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