- Jan 17, 2002
- Professional Status
- Certified Residential Appraiser
I often see comments on the forum from many appraisers who state that they do not review a condo budget. I believe it is an appraisers responsibility to do so. It does not take a genius to do a review and spot problems. I just reviewed a Condo budget on a VA sale. The HOA Fee is higher than other similar condo's in the immediate area. The budget contains very questionable expenses. For example, an expense for landscaping. there is no landscaping. Fees for a master insurance policy and a flood insurance policy that is very high with no indication if it cover individual units, And, the asphalt common area is in a very deteriorated state and needs to be replaced. There are no reserves for anything except replacing siding, which does not appear to need to be replaced. I took photos of all this and included with the appraisal. In my opinion, and appraiser who does not review and comment on a condo budget is negligent in the appraisal of a condominium. I know many will disagree and that is just fine. But it is one of the things an appraiser is expected to do.