Interesting Appraisal question

[Don Clark]

Find sold condo comparables with improvements that still exist. Then do a cost approach on several of the sales with existing units, and abstract the land value from those.

Total sales price(Example), condo unit plus similar site = $950,000.00

Cost approach, determine cost to replace the improvements = $650,000.00

Remaining site value = $300,000.00

Example Only. i have no idea what the actual numbers would be.

 

[robert higgins]

I would look up the deed and property rights of the subjects unit. If it is a condo, I would look up the master deed of the subject and see who owns the land, then look up the assessor’s card on that person. If the owner of the land is getting taxed for the whole complex I would think the condo owners are over taxed for the condo unit.

Now if you find that in fact the condo unit is a PUD, then I can see the town having the ability to tax for land.

 

[ghrousseau]

Question for you:

Did any of the homes in the project survive? Also, is the city considering re-zoning any of these lots and is the remaining association considering allowing any of the owners to spit off from the condo ownership?

 

[Brad Ellis]

Shannon,

Interesting. Mike Boyd contends that these site condos do not exist in CA and that they must be PUDs.

Can you give us a parcel number on any of the homes in that complex so we can look at the public records and see exactly what it is?

From your description it certainly looks like it might be a site condo complete with a separate APN for common areas as well.

Brad

 

[CertifiedRes]

Get a copy of the cc&r's to determine exactly what rights are conveyed to the homeowner. Was it a site condo? Does the HOA own and maintain the structures in the tract with the homeowners buying air rights within the structure and over the unit site? Exactly what will the association allow you to build? Must it be an exact replicate of the structure that was there before or is the homeowner free to build a different style, size, or quality?

By definition, with condo ownership, you do not own the land. If the legal description describe a tract and unit number, then it is a condo. If it describes a tract and lot then it is a PUD. In either case, the HOA is going to have a major say in how the lot may be re-developed and the value will be affected significantly by the cc&r's. It would be very dificult to compare this property to a standard fee simple lot outside of the tract. If the existing homes in the tract are relatively new then I would subscribe to doing a detailed cost approach to extract the value of the air rights conveyed to the homeowners in that tract.

 

[Webbed Feet]

To All,

So far about all I see out of the O.P. is a certified residential appraiser that doesn't know how to identify the difference between H.O.A. owned land and if the unit owner owns the land individually or not. So yes, there is a very interesting question here. Mostly, the question is will the O.P. end up facing a state board over this because she doesn't seem to even know how to start with the basics. So therefore she can't even determine if this is out of scope of her license. This assignment could require determining the land value of the entire project as part of the scope. It is very doubtful any residential license allows that.

I recommend she steps back and reads the SOW Rule again versus her licensing.

Webbed.

 

[Brad Ellis]

Mike, Webbed, Shannon et al,

Let's please be careful about denigrating someone based upon what one believes or that something cannot exist just because you have never seen one.

Site condos exist. Don showed that in the other string. But Mike checked with his title company and they said different.

Here is the address and data on a listing in Palm Springs, CA:

2733 S. Kings Rd. Public records show this (both in Realquest and on the county assessor's site) to be a condo. Ownership type is condo and the land use falls under the condo/pud group- however, do not get excited yet.

Lot size is 6098 SF. Building size is 2547 SF. APN 009-602-687(4). Legal description clearly delineates it as an individual lot AND (&) an interest in common areas. Listing and broker comments show it to be a free standing home. Plat map shows individual lots on a private street with what is likely a greenbelt within (did not do an aerial- so that part is assumption). County assessor confirms ownership type and that the lot is individually owned and land value (prop 13) appears also in the assessor records.

Now, interestingly, the title company I spoke with (one of the largest) said the same thing Mike's title company said- cannot be.

Could that be why I routinely win cases against title insurers?

Shannon- just do your research and make no assumptions about this site based upon what may be (I do not know the specifics of your assignment) incorrect information from all of us experts!

Good luck.

Brad
Looks to me like

 

[Don Clark]

If it looks like a duck, quacks like a duck, has feathers and feet like a duck, well....to some it cannot be a duck:icon_mrgreen:

Just for giggles, we have some very large PUD's both by zoning and fannie maes definition, and ......gasp....the PUD's also have CONDO's in the PUD. lord oh lord, how can that be.

 

[Webbed Feet]

The problem has not been identified.

Yeah it is listed as a condo on the county use code, has the extra parcel# indicating condo ownership and plat map has no lot lines....I wish I could get some of those nice cookie cutter tract home deals, only getting those nice FHA detached condos, 3 unit purchase with 2 sales in the past 6 months, and construction loans from hell...

Mr. Ellis,

After reading both of Ms. Hoelzer's posts again. The first wherein she is asking how to "appraise a land assessment"... (caveman says "What?') and this second one about a plat map with no lot lines....

I stand by my original post. The scope of work rule has not been followed far enough to so much as post on the forum asking for answers. Not when the poster doesn't yet understand what the subject to be appraised is. I expect posters, who are certified, to be able to do a better job than that in defining the problem at hand they have for an assignment before they ask questions. Specifically because they can't ask the right questions if they don't understand how to define what the problem is.

Webbed.

 

[GulfBoating]

A condo is a form of ownership not weather its attached or detached. In florida we have PUD's and condos along the same street. If you drive down the street they look like detached single family homes you can not tell the type of ownership without first looking at the legal description.