How do you do residential condominium appraisal?

[just_one_question]

Aside from using comps - how do you appraise condos, and do you consider the way you appraise similar or different from your colleagues in the industry?

In other words:

How standardized is residential condo appraisal industrywide? Quite standardized? Somewhat standardized? Not standardized at all?

 

[Joe Flacco]

When I look at the data in a condo building it is very clear and obvious that the tier the unit is in can have a major impact on value. Especially in the cases of larger corner tiers or tiers with wider floor plans.

Based on what I have seen it doesn't seem like most or anybody really considers the tier / floor plan of the units. It is a minor complexity when the unit is located in one of the better tiers because there may not be any sales in the tier in the last 12 months. I have seen several condo appraisals that are way low because the analysis doesn't consider the tier and floor plan. Most seem to just pick the same SF and bedroom / bathroom count that are most recent.

There is nothing in appraisal that is "standardized". Everything depends on what the property being appraised is and what data is available.

 

[Carnivore]

Aside from using comps - how do you appraise condos, and do you consider the way you appraise similar or different from your colleagues in the industry?

In other words:

How standardized is residential condo appraisal industrywide? Quite standardized? Somewhat standardized? Not standardized at all?

Thank You for the Opportunity to answer your Question(s), You came to the right place.

If the assignment is for Lending Industry aka Mortgage Origination it is quite standardized in the actual reporting.

The Development of the assignment is where it can get complicated.

This will in part help answer your question: https://singlefamily.fanniemae.com/media/29416/display

Another example FHA has different requirements.

 

[JeffSH]

Condos are the easiest appraisal assignments when it's a cookie-cutter development of 400 model-match units.
Condos can be the most difficult assignments when it's a double-unit penthouse with dated, but very high-quality finishes. Something like that.

There is no standardized process. I've had multiple condo assignments over the years where there were no adjustments necessary in the grid. But some of my most difficult appraisals are unique downtown condos.

 

[Elliott]

At least two sales in the project, two outside the project. There is no better use of 'skeleton' reports and its best to triple check your floor level adjustments.

I don't know what you mean by 'standarized'?

 

[Carnivore]

Condos are the easiest appraisal assignments when it's a cookie-cutter development of 400 model-match units.
Condos can be the most difficult assignments when it's a double-unit penthouse with dated, but very high-quality finishes. Something like that.

There is no standardized process. I've had multiple condo assignments over the years where there were no adjustments necessary in the grid. But some of my most difficult appraisals are unique downtown condos.

Boom! Ain't that the Truth. Especially the top two stories two floor Double unit made into one.

 

[Joe Flacco]

At least two sales in the project, two outside the project. There is no better use of 'skeleton' reports and its best to triple check your floor level adjustments.

I don't know what you mean by 'standarized'?

Two outside of the project for what? They are never the best indicators of value. In the same project and in the same tier are the most similar in almost all cases.

 

[Carnivore]

Two outside of the project for what? They are never the best indicators of value. In the same project and in the same tier are the most similar in almost all cases.

Only when the Subject Property / Condo development is New Construction as I recall. I do agree with you that on existing an development, you should stay inside Subject Complex, Apple to Apples Pears to Pears.

 

[Fernando]

Condos take more work.
I actually have to go and see where the condo comps are located in the building for location and views. Thus it requires more physical walking.
I consider whether it's located South or North depending how much sun the unit gets. Maybe because I look at condos as if I'm purchasing them and each is unique in its own way.
Then I have to consider HOA fees and check out its amenities.
That's why I charge more for condo appraisals.