Property Appraisal for Condos
Property Appraisal for Condos
Although in its most basic state a property appraisal for condos is the same in that it assesses a property’s worth, there can be some significant differences and distinctions that significantly impact a property’s value. When a property appraiser such as Abbe Edelman appraises a condominium, there are many aspects that make them different to assess. One of the main differences in a condo is that even though the owner owns a piece of real estate, it is very different when it is compared to other traditional forms of real estate ownership. The condo owner has a piece of real property but they only own the title to their individual unit. They do not hold title to the land under the unit since it is shared by all the owners in the condo and is considered a common area. These common areas that are shared with other owners include areas such as halls, roofs, lobbies, and the exterior of the building. It is typical that the maintenance of the building or any projects are addressed by a Homeowner’s Association. All the owners pay fees which are used in the maintenance of the common areas. Property taxes are assessed on each individual unit.
How is the Value of a Condo Determined?
The sales comparison method is used as the primary method of valuation just like with other forms of residential property appraisals. In other words, the individual condo is compared with other similar units that have recently been on the market and been sold. These comparisons may be with other condos in the same building, or other comparable condos in the region.
Key Features for Determining a Condo’s Value
Some of the main features which are considered when valuing a condo are the square footage of the unit, which is also called the gross living area (GLA), the number of bathrooms and bedrooms the unit has, which floor the unit is on, the view – if there is one, and the overall condition the unit is in. This will include any renovations or amenities. And the property appraiser will consider the amenities that may be associated with the building the condo is situated within as well as the homeowner’s association fees.
What makes a Condo Appealing?
Many people prefer condo apartments over coop apartments for several reasons. When a person purchases a condo, they do not have to deal with the trouble of getting board approval, as is required in buying a coop apartment. Condos usually have fewer restrictive rules that owners have to abide by. And one of the main reasons is that there are not typically any restrictions on being able to sublease the apartment if so desired. A coop apartment generally prohibits subleasing, restricts it or requires prior approval. These are the main reasons that a condo apartment is more appealing than a coop apartment when talking ownership. This does mean that a condo is generally more expensive than similar apartments which are in a coop.
Is a Condo a Good Investment?
Purchasing a condo is an investment just like purchasing any other type of property. The only con may be that it is still similar to apartment style living, and this is not suitable for everyone. However, the investment of a condo is better than no investment at all. When it comes to property appraisal, a home will appreciate faster than a condo will, but this will depend largely on the location and is not always the case. Condo prices are based almost solely on the latest sales in the same development. If there are no sales, then the realtor may use pricing that is similar to outside sales prices. Making a purchase of a condo can be an excellent way to enter the world of homeowners and can be just as much an investment as purchasing traditional real estate.
How is the Value of a Condo Determined?
The sales comparison method is used as the primary method of valuation just like with other forms of residential property appraisals. In other words, the individual condo is compared with other similar units that have recently been on the market and been sold. These comparisons may be with other condos in the same building, or other comparable condos in the region.
Key Features for Determining a Condo’s Value
Some of the main features which are considered when valuing a condo are the square footage of the unit, which is also called the gross living area (GLA), the number of bathrooms and bedrooms the unit has, which floor the unit is on, the view – if there is one, and the overall condition the unit is in. This will include any renovations or amenities. And the property appraiser will consider the amenities that may be associated with the building the condo is situated within as well as the homeowner’s association fees.
What makes a Condo Appealing?
Many people prefer condo apartments over coop apartments for several reasons. When a person purchases a condo, they do not have to deal with the trouble of getting board approval, as is required in buying a coop apartment. Condos usually have fewer restrictive rules that owners have to abide by. And one of the main reasons is that there are not typically any restrictions on being able to sublease the apartment if so desired. A coop apartment generally prohibits subleasing, restricts it or requires prior approval. These are the main reasons that a condo apartment is more appealing than a coop apartment when talking ownership. This does mean that a condo is generally more expensive than similar apartments which are in a coop.
Is a Condo a Good Investment?
Purchasing a condo is an investment just like purchasing any other type of property. The only con may be that it is still similar to apartment style living, and this is not suitable for everyone. However, the investment of a condo is better than no investment at all. When it comes to property appraisal, a home will appreciate faster than a condo will, but this will depend largely on the location and is not always the case. Condo prices are based almost solely on the latest sales in the same development. If there are no sales, then the realtor may use pricing that is similar to outside sales prices. Making a purchase of a condo can be an excellent way to enter the world of homeowners and can be just as much an investment as purchasing traditional real estate.