Comps and time

Falcogold1,
Appraisals subtract anywhere from 1% to 5% of the sales price for every month that passed since the comp was closed. The exact amount is determined according to the strength of the area where the properties are, a stronger area would have less deductions. This of course comes IN ADDITION to the floor adjustment which is 10,000 for every floor.

Are you talking about what are appraisal guidelines, or what should YOU do when making a bid?

The $10,000 per floor number does not sound right to me. Where are you getting that figure from?

recent talks with appraisals.....what do you have in mind?

I am considering making a bid. I am looking at a comp from Jan. in excellent shape for 1.3MM on the 16 floor and one from July in 'needs a complete reno cndition' for 1.1MM on the 4th floor. This one is in excellent condition on the 12th floor. Good neighborhood. All have same directional view (higher the better). Getting my action in order to make a bid. Suggestions???

from those comps, it seems that the person on the 4th floor overpaid in July. the renovation is about $150K+ and the floor difference is $150K+ difference....

OK, the condition/how recent thing is a toughie: if it is in good enough conditon that you could see yourself living in it without doing any major work for the time period you anticipate living there, and then selling it and AT THAT POINT IN TIME it still being in decent enough condition as to not be a "problem", that's the "cut off point" in terms of having to make a major reduction because if at any point in your ownership you "have to" renovate, then it doesn't really matter when the $ are spent, it's all the same in your basis.

Falcogold1 - this is a tough comparison....looks like the person who bought in July really over paid a lot. I suggest to look for more comps even ones that are in contract to get a better picture.

shaimegidd - knowing nothing about the apartment other than this data, it is just as likely that the person who bought in January got a great bargain. Off of 2 data points you can't possibly draw the conclusion one way or another.

Falco. Just don't come back spinniker1. He's lost all creds with me. :)

Forgot 'as'. Like I said off my game tonite.

Printer - you have a point. We both agree on the bottom line - you can't draw the conclusion based on these 2 sales only. More info is needed.

Only 2 sales in the building this year. Last comp same line (floor 18) went fot 1.87MM late 2007.