How do you appraise a condo?
Real estate agents sometimes use square footage as a rule of thumb for appraising a property. To use this method, multiply the square footage of your condo by the average price per square foot of homes that recently sold in area. When using comps, add to the value if your home is larger, and subtract if it is smaller.
What affects a condo appraisal?
Key features for appraisal include the condo’s square footage, age, number of bedrooms and bathrooms, lot size, location, and view. Appraisers conduct a visual inspection of your potential new condo and will note any necessary repairs.
Do condos get appraised?
Appraisals are required for all types of financing, including individual co-op and condo loans, underlying permanent mortgages on cooperative apartment buildings, and even partial-interest property rights, such as shared common areas in condominium properties. Real estate appraisal is as much a science as it is an art.
How to measure a condominium for real estate and appraisal?
Measuring a condominium for an appraisal is fairly simple and easy to do, that is unless you have a grain silo that’s been turned into condominiums. I appraised one of these units several years ago, which was quite the challenge due to the round walls. For this example I think we’ll stick to the traditional squared walls.
How does the appraisal process work in condos?
“The appraisal process,” Miller explains, “is that the fewer adjustments the appraiser has to make between the subject and to the comparable the better; the more reliable is the comparison. This becomes immediately apparent when, for example, you’re using the apartment on the floor above or below in the same line.”
What does an appraiser look for in a home appraisal?
Remember, the home appraiser is there to report back to the lender who will be providing the buyer with a mortgage. The home appraisal’s primary purpose is to make sure the mortgage holder is not lending money on a property that does not have the necessary equity. The Size of the Property Plays a Key Role in House Appraisals
Can a cost approach be used in an appraisal?
“While the key to appraising is that appraisers consider all three approaches to value,” says Miller, “in a multifamily co-op or condo building, the cost approach can’t be used because you’d have to extract the cost of the unit from the entire project – so it’s just not practical.
