Condominium

Condo appraisals require analysis of both the individual unit AND the larger condominium project. Comparable sales must come from similar units within the same project where possible, then from comparable projects when in-building sales are insufficient. We also analyze the HOA financials, reserve study, owner-occupancy ratio, litigation status, and special assessments — factors that don’t apply to single-family homes but materially affect condo value and lender acceptance.

For most condo loans, yes. Lenders require either Limited Project Review or Full Project Review depending on the loan program and property characteristics. Fannie Mae, Freddie Mac, FHA, and VA each have project eligibility standards covering HOA reserves, owner-occupancy ratios, single-entity ownership concentration, insurance coverage, and active litigation. We can identify potential project review issues during the appraisal and flag them so financing isn’t derailed at the last minute.

We expand the comp search using a tiered approach: same project (most weight), same project type and era within the same neighborhood (medium weight), and comparable projects in adjacent neighborhoods (least weight). Adjustments are applied for differences in project amenities, HOA dues, unit floor and view, and square footage. The appraisal documents why each comp was selected and how the adjustments support the final value.

HOA dues affect value in two ways: (a) higher dues reduce the buyer pool by lowering affordability for a given purchase price, and (b) dues that fund robust reserves and well-maintained amenities support value, while dues that don’t cover obligations suggest impending special assessments. We analyze the dues in context of what they cover and benchmark against comparable projects. Below-market dues with weak reserves often indicate trouble; above-market dues with strong amenities and reserves typically reflect well-managed projects.

Yes. High-rise condos (Downtown LA, Century City, Wilshire Corridor) require analysis of view orientation, floor level, building amenities (concierge, gym, pool), parking allocation, and unit configuration. The buyer pool is different (investors, second-home buyers, professionals) and the comp pool is highly project-specific. Suburban garden-style condos trade more like townhomes with HOA, and comp pools are typically broader across similar projects. Methodology adapts to the specific project type and buyer pool.