B4-1.4-03, Condo Appraisal Requirements (04/15/2014)

A condo project is one in which individual owners hold title to units in the project along with an undivided interest in the real estate that is designated as the common area for the project.

The appraisal of an individual unit in a condo project requires the appraiser to analyze the condo project as well as the individual unit. The value and marketability of the individual units in a project depend on the marketability and appeal of the project itself. Therefore, the appraiser must pay special attention to

• the location of the individual unit within the project,

• the project amenities, and

• the amount and purpose of the owner’s association assessment.

See B4-1.3-08, Comparable SalesB4-1.3-08, Comparable Sales, for general requirements regarding comparable selection.