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Why are real estate appraisers allowed to appraise cooperative unit

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Roger Murdock

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....being that they are in fact not real estate but rather personal property?
 

USPAP Compliant

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A) Many states do not license personal property appraisers.

B) The process is similar to an appraisal report with regard to comparable and income approaches.

Who knows?
 

Scott Kibler

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You're appraising an interest in real property, just not fee simple interest.
 

Roger Murdock

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New Jersey
It is not an interest in real property any more than a share of McDonald's is an interest in real property (being that McDonald's is a major owner of real estate).
 

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North Carolina
Get a stock broker....all it is is stock and then a lease.
 

Howard Klahr

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It is not an interest in real property any more than a share of McDonald's is an interest in real property (being that McDonald's is a major owner of real estate).

You are inferring that ownership of a co-op is comprised of sharers of stock in a corporation which is correct. However, it also is comprised of a proprietary lease which is an interest in real property.
 

Oregon Doug

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Ask a lender why they need the appraisal.

Can a lender foreclose on a co-op?

Oregon Doug
 

Don Clark

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Virginia
It is not an interest in real property any more than a share of McDonald's is an interest in real property (being that McDonald's is a major owner of real estate).

You are absolutely 100% wrong. A cooperative is where a person buys stock in a corporation that owns real estate. The stock that a person owns gives them a proprietary right to occupy a unit in the real estate owned by the corporation. That is an interest in real estate. I suggest you contact a knowledgeable attorney. In my state of Virginia I was at a state board hearing as an observer. the appraiser tried to use that line before the state board. The appraisal board ruled that it is an interest in real estate, and suspended his license for 2 months, a hefty fine, and several courses he had to take. The initial complaint was that he did not provide his client with a copy of the report after the one he said he sent was never received by the clinet.

BTW, The department of Veterans Affairs considers a coop to be real estate. They just sent out a request for all fee panel members to let them know if they have experience in appraising coops.
 

Don Clark

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Professional Status
Certified Residential Appraiser
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Virginia
Ask a lender why they need the appraisal.

Can a lender foreclose on a co-op?

Oregon Doug

Yes they can, and, when they foreclose it is on the entire co-op.
 

Jim Onderisin

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Illinois
Good question to start the thread. Chicago has some coop buildings, but relatively few. I've done some appraisals on individual units but not enough to hold myself out as expert. Each time I've appraised one, Marc's question has occurred to me. There is just SOMETHING not right about the process of appraising them.
 
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