How to value an ownership share of undivided common elements?

[masmia]

I have an assignment to determine the value of an undivided share of common elements in a condominium for a condo unit owner that has not yet built his unit and has no plans to build and no building plans. Any tips on how to approach this will be appreciated.

 

[stefan olafson]

Hmmm? "a condo unit owner" "undivided share of common elements in a condominium"

"has yet to build his unit and has no plans to build..."

What are you valuing? an undivided interest in nothing?

You lost me somewhere along the way....

The common elements of a condominium are typically owned by the whole property and the unit owner has and UNDIVIDED interest. That specifically makes valuing it almost impossible...

 

[Dennis J. Black ASA IFAS]

You are being asked to work beyond the scope of your license in my opinion. Florida statute says 1-4 family. You are appraising an undivided fractional interest.

Let the bashing of Dennis begin.

 

[stefan olafson]

I agree with you Dennis, I forgot to look at his license level.

Good Catch

 

[Mike Boyd]

You are being asked to work beyond the scope of your license in my opinion. Florida statute says 1-4 family. You are appraising an undivided fractional interest.

Let the bashing of Dennis begin.

This is one time I agree with you, Dennis. Undivided interests, in itself, requires special training and knowledge........plus a degree in clinical psychology.

Just kidding about the degree.

I can't figure out what he is even suppose to appraise. Does the client own the air space for a yet to be built condo? I think it is too hypothetical for ANY real estate appraisal.

 

[Michigan CG]

You are being asked to work beyond the scope of your license in my opinion. Florida statute says 1-4 family. You are appraising an undivided fractional interest.

Let the bashing of Dennis begin.

I wouldn't do it with my license!

Dennis how would you like to be bashed? Personally, professionally....?

 

[Dennis J. Black ASA IFAS]

Tim,

I don't want to be bashed at all. It has just become a fact that when I bluntly point out that people who hold themselves out to the public as a real estate appraiser, and they often do not know their own regulations or basic items, I then get nasty PM's.

 

[Michigan CG]

Tim,

I don't want to be bashed at all. It has just become a fact that when I bluntly point out that people who hold themselves out to the public as a real estate appraiser, and they often do not know their own regulations or basic items, I then get nasty PM's.

Your opinion was correct. You should see some PM's I get! Some people don't like reality.

If you go through a slow period of mean PM's let me know, you can have some of mine.

 

[Mr Rex]

Your PMs have more to do with you choice of girly man snuff than anything else. My grandmas (plural) dipped snuff, you couldn't hold a real grandma's cheek worth of real 'bacco IMHO

 

[jay trotta]

1st off will agree with Dennis

2nd ly......Documents would need to have been recorded (The Prospectus) which would define the "Ownership" interest of the individual Units, whether they are built or not, it is typically part of the package (at least in my state). This would be more in line with a Commercial Appraiser, as they would need to discover the various Value's inclusive of the project etc. - mega Benjamins fer that