Cohousing-L Mailing List: CoHousing Appraisals

[William New (williamnew]

Sharon Villines <sharon [at] sharonvillines.com> opined:

>>
problem is with appraisals. I just had my unit appraised to consider
refinancing. Banks are very conservative and will only consider
"comparables." Since there are no comparables, the value is not established.
<<

Suggests that one should early on encourage sales of co-housing units to
interested parties (e.g. Party A sells to Party B who sells then to Party C
who later sells back to Party A = three sales on the record for bank
appraisers to reference as "comparables".  No significant cash actually
changes hands if everything is done as owner debt financing with an
assumable note payable to Party A secured by the property.

These are bona fide sales if title actually passes, deeds are legally
recorded, and the note is a full recourse instrument with foreclosure rights
by Party A (thereby protecting A's right to eventually get their unit back).


 ================================================================
[ William New   Novent Group   Palo Alto, CA   USA   94302-0879  ]
[                        williamnew [at] mac.com                      ]
 ================================================================

_______________________________________________
Cohousing-L mailing list
Cohousing-L [at] cohousing.org  Unsubscribe  and other info:
http://www.communityforum.net/mailman/listinfo/cohousing-l