Method for calculating bulk sale discount for 13 residential condos

[Zoe]

If you go down that road, most definitely discounted cash flow would be involved. It is involved period. It doesn't matter on value definition really.

Pretty much throw sales comparison approach out the window.

You could do cost and income approach and hang your hat on it.

 

[Zoe]

I don't know client requirements or who the client is.

I could turn it down. I set SOW.

 

[Zoe]

I am no longer competent to complete assignment. I am very sorry. Thank you for your consideration.

 

[Zoe]

You have to do discounted cash flow on the sales. No other way. Absorption rate etc.

 

[Zoe]

If they could only be sold as a group? Different story,

But each of these properties have their own real property rights.

See?

 

[Zoe]

Liquidation value definition vs Market value definition makes little difference on this assignment. Terms and conditions of assignment are different.

 

[Zoe]

On the risk of being obtuse? Does anybody live there?

I can go way deeper. That was loss leader question. Okay I have other questions based on your answer.

Open end question. Bleed your guts.

 

[Zoe]

I don't appraise people. I appraise real property rights.

 

[Zoe]

Try me. I am pretty good at getting relative information from people on real property rights.

Sometimes they are like I wish would not have said that. LOL

 

[Gobears81]

These are somewhat conflicting posts - the consensus in this thread seems to be to do a DCF, which is certainly an option if the individual values are sufficiently higher to support sales expenses, but this would not emulate market behavior if the most likely purchaser would have no plans to sell individually. I'm kind of surprised that so few appraisers in other markets haven't seen this type of behavior, as it has been plenty of times for me and I don't recall many times where they actually ended up trying to sell off the units individually.

If they could only be sold as a group? Different story,

You have to do discounted cash flow on the sales. No other way. Absorption rate etc.