Appraising Fractured Condominium/Conversion & Reversion
Appraising manufacturing facilities, specifically fractured condominiums or conversion and reversion properties, presents a unique set of challenges requiring a deep understanding of both residential and investment real estate.
A fractured condominium project involves units owned by various entities, some rented, others owner-occupied, and some potentially unsold. Appraisers must consider the intricacies of this mixed ownership and occupancy when determining the property’s value. This requires understanding the local market’s demand for both rental and owner-occupied units.
Conversion and reversion properties, typically converted from rental apartments to condos (or vice versa), introduce additional complexities. An appraiser must evaluate the cost, potential return, and market feasibility of such transformations.
Both property types require a keen understanding of current market conditions, zoning regulations, and future development plans. Additionally, operational expenses, including maintenance, insurance, and property management costs, should be factored into the appraisal.
The location, size, layout, unit mix, and overall condition of the property greatly influence its value. Given these complexities, appraising fractured condominiums or conversion and reversion properties necessitates a seasoned real estate appraiser with a comprehensive understanding of residential and investment property valuation.