New Construction Condo

[ProspectMI]

I have a private order from a builder who is building four separate condo developments of three units each. Each unit will be listed as A, B, and C. So it would be 123 Main St, Unit A for example.

Originally before they said it would be a condo, I was completing as multi-family and was going to obviously do one building with three units for all four developments. Now that they will be condos, is there an easier way to still complete as one whole building or do I need to individualize each report so instead of 4 there will now be 12?

I appreciate any help.

 

[Ariba]

I have a private order from a builder who is building four separate condo developments of three units each. Each unit will be listed as A, B, and C. So it would be 123 Main St, Unit A for example.

Originally before they said it would be a condo, I was completing as multi-family and was going to obviously do one building with three units for all four developments. Now that they will be condos, is there an easier way to still complete as one whole building or do I need to individualize each report so instead of 4 there will now be 12?

I appreciate any help.

NO!

 

[Lil Rhody]

Sounds like you might need a copy of the condo declarations to verify the property's legal use. If the property has been declared as a condominium, a CGA should be developing the appraisal of the project as a whole. Even though the units are residential in nature and there are only 3 units, the project tin its entirety is a commercial property. If you do end up valuing the project in its entirety, net sell out and gross sell out analysis methods are probably the easiest way to reconcile a value of a newly constructed condominium project.

 

[TerryRohrer]

If these are individual condos and the task is to estimate market value, I expect it is unlikely that the highest and best use is not separate units, rather than 3-unit buildings. Furthermore, if you are not certified general, consider your licensing restrictions. There are limits to the number of units you can appraise like this before you and the lender run afoul of regulatory limits. I will let the lenders among us flesh out those pitfalls.