Cohousing-L Mailing List: Re: cohousing and resale

[Sharon Villines (sharon]

> Wondered if anyone would share experiences with resales of cohousing
> units in their communities, specifically appraisals of units.

Here again it depends on what kind of development you are. Appraisals 
are based on comparables. What have similar homes in the area sold for? 
They also depend on the appraiser's willingness to make an argument to 
the bank about the value. It is worth whatever someone will pay for it 
but to the bank it is worth only what they would pay for it or they 
_believe_ someone else will pay for it. They will not loan more than 
80-90% of that amount.

I've had two different appraisers look at my apartment for refinancing. 
They each handled it entirely differently with a resulting difference 
of $130,000 vs $150,000 for the same unit. The first appraiser had no 
idea what a DSL line was and refused to even look at the commonhouse 
amenities because there was no comparable space in the area. The second 
when out of his way to extrapolate comparables from surrounding areas 
where there were condominiums with clubhouses with similar features and 
to argue about energy efficiency, etc.

The appraiser has to think and the figures have to be based on actual 
sales and the bank has to buy the argument. Of course anything the 
community can do to provide the appraiser with information will help 
enormously. Having the local banker to dinner probably wouldn't hurt 
either!!!!

Sharon
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Sharon Villines
Takoma Village Cohousing, Washington DC
http://www.takomavillage.org