Site Condo Lot Adjustments?

[Valleydude]

I am appraising a freestanding condo where the owner also owns the land. We don't have many of these in LA. Would you make lot size adjustments to the comps like with an SFR?

 

[sputnam]

I might argue that if the property includes ownership of the land it's on... it's not a condo.

 

[Terrel L. Shields]

where the owner also owns the land

Wiki- in the case of a freehold condominium the owner owns the land and building and the corporation owns common shared roadways and amenities.

Pretty much like a HOA. I would explain explain explain. And I'd use comps with similar freehold Condo or HOA dues compared to the Condo fees and explain the nature of the beast.

 

[Valleydude]

Thanks for the response. The legal description indicates its a condo. There are freestanding units and attached units, HOA dues, common areas, in the development. The owner bought the vacant lot and built the unit on it.

 

[Valleydude]

Thanks Terel. I only used sales of the freestanding units with ownership of the land like the subject. They have different lot sizes. Wondering whether the lot size should be adjusted for. There are no other condo properties like this in the area. This is pretty unique.

 

[Trihard]

On site condos the owner of the property also owns the site, hence its called a "site" condo. They have to mow the lawn, do any sort maintenance to the land and they are also responsible for the landscaping. In addition with a site condo the property owner also owns the exterior walls. Its the same as a regular ole house except they have an association due usually for a club house, tennis court or a pool etc. You should definitely make an adjustment if there is market data indicating that an adjustment is necessary for site size difference.

 

[Valleydude]

Thanks Trihard. I appreciate it.

 

[Tim The Enchanter]

These are a pain. I would look at the plat maps for subject and all comps because I don't trust the agents or Realist to be accurate.
Yes, adjust if warranted.

 

[Valleydude]

Thanks Lee in LA.

 

[Tim The Enchanter]

If this happens to be in North Hills, east of the 405, you should have comps.
Just need to dig a bit more.

Don't ask about the new silly wrinkle "Small Lot Subdivisions".