- The lender requires a value for the subject site for a condo unit in a building, how do I address this

[BLIMAG]

The lender requires a value for the subject site for a condo unit in a building, how do I address this

 

[bnmappraisal]

Uuuuuuhhhhhhh What?!

Good luck

Does the lender know/understand what they're asking for???

 

[andrew81]

The lender requires a value for the subject site for a condo unit in a building, how do I address this

tell me why you would not provide a subject site value for a condo unit in a building, then copy and paste it in a reply to the lender

 

[Carnivore]

Interesting! So you have a residential condo. Individual Condo units usually have a percentage interest in the total Site. Thats how they asses tax's, hoa fee and other things.

So how large is your Complex Site. I have seen some as little 1-3 acre and greater than 20 acre+ This is like them asking for REL.

Throw them a curve ball. ASk if they want the total complex Site or just the Subjects Phase. That will get them scratching their heads.

I once was ask to give the REL for a 29 Floor Condo Building with the underground parking, 1st and 2nd floor commercial and all the amenities like gym,, party room, Outside Social Center on the 3rd level. and the remaining floors were all residential condo's My Subject was an 800+ sft one bedroom unit.

I answered with 100 Years! That shut them up.

This can be done. It won't mean anything for your report. AND it will cost them big bucks more than your getting(possibly)

 

[Tim The Enchanter]

Tell them it is irrelevant to a condo, duh.
Save the "You can't fix stupid" line for later.

 

[Meandering]

The lender requires a value for the subject site for a condo unit in a building, how do I address this

Address it as,

THIS IS NOT TO BE USED FOR INSURANCE PURPOSES.

Cause that's the only reason they want a site value for a condo.

.

 

[Tim The Enchanter]

Address it as,

THIS IS NOT TO BE USED FOR INSURANCE PURPOSES.

Cause that's the only reason they want a site value for a condo.

.

And you came up with this imaginary number how?
Oh right. PFA.

 

[Meandering]

And you came up with this imaginary number how?
Oh right. PFA.

per SF, just like you did.


Now just imagine it's on the 3rd floor.

But a detached or semi-detached, yes, you can estimate a "value" for the SF of the land that unlies the foundation, as a percentage of the total land in the development.

But maybe not if your CR license limits you to the value of only 1-4 residential units, but yes, a CG can value the entire property and estimate the contibution of a patch out of the whole, via a percentage calculation.

.

 

[Tim The Enchanter]

but yes, a CG can value the entire property and estimate the contibution of a patch out of the whole, via a percentage calculation.

I would not give a number for this. Your approach sounds reasonable.
But what does the number mean? You can't sell your percentage. So, not meaningful, imho.

 

[CANative]

I'm losing my memory and my fingers are gnarled but here's an old thread with some old friends... Lee is in there too.

Cost approach for condo unit

Has anybody done cost approach on a new condominium unit? I am going to appraise a new condo and thinking to give the cost approach a try because the project is new but I am not sure it is practical or not due to the common area and land ownership. Your comment and experience appreciated. Moh

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