A co-op appraisal requires a different skill set than appraising a single-family house. New York and Connecticut state law requires appraisers to value residential cooperative apartment buildings using the sales comparison approach — meaning we look at recent sales of comparable co-op units with similar characteristics, not simply what you could sell your shares for on the open market, to determine your co-op’s market value.
A co-op appraisal isn’t only needed at the time of sale — it’s also common during a divorce or when settling an estate (a date of death appraisal). Hudson View appraises co-ops for all of these situations throughout New York and Connecticut; see our divorce appraisal and estate & date of death appraisal pages for details.
What Is a Cooperative?
With a cooperative, or co-op, a buyer purchases shares in the corporation that owns the apartment building, rather than real property itself. In exchange, the buyer receives a proprietary lease giving them the right to live in a specific unit. Co-ops differ from condominiums in that the buyer never acquires title to a specific unit — they become a shareholder in the corporation instead.
Transactions involving co-ops can be more complicated, because there may be an interview process for prospective buyers, and lenders may not finance a co-op purchase without the ability to foreclose on a specific unit or home.
What Factors Affect a Co-op Appraisal?
Comparable co-op properties are chosen based on unit count, size, age, distance and number of stories — there is never a perfect match. To account for any differences, we make adjustments based on the recent sale prices of comparable co-op units, weighing factors like floor level, view and building amenities, rather than relying on rental income or expense data. The five factors below have the biggest impact on your co-op’s appraised value:
Similar co-op apartments just a few blocks from one another can have very different values. The floor that a home is on, the kind of view or light it gets — each factor contributes to its value. Our Expert appraisers are intimately familiar with the neighborhoods they work in.
The appraiser will take into account the age, condition, location, and the amenities offered in the building. An apartment in a building with a doorman attended lobby, elevator, laundry, and gym will be appraised at a higher value than a building with none of the aforementioned qualities. To the same point, consistently desirable locations have a positive impact on appraisals.
The appraiser will look at the materials used in the home, taking into account condition and quality; their condition is very important. The walls, flooring, windows and doors, will be inspected to determine quality and locate any defects or damage. The lighting fixtures and kitchen appliances are also evaluated during an appraisal; their condition will have an influence on the appraiser’s estimate.
Amenities that contribute to the comfort and safety of a cooperative apartment will greatly improve the appraised value. Our Expert appraisers will take into consideration all the extras that your home offers, such as air conditioning, fireplaces and security systems. Building amenities, such as a gym, tenant lounge, elevator, doorman, swimming pool and parking garage could also increase value and lead to a higher appraisal.
Any improvements made to the apartment since the last ownership will affect the appraisal. While inspecting the interior of your apartment, the appraiser will pay attention to upgrades that were made to the kitchen and bathrooms especially. A new oven, stove, sink or bathtub is a big plus when determining the home’s value. Because the appraiser might not notice all the upgrades that you’ve made, it is important to provide him or her with a list of all the improvements before the appraisal starts.
Market trends also play a role — are large, amenity-rich buildings commanding the strongest sales in your neighborhood right now, or is classic pre-war style generating more interest? At Hudson View, we match amenity against amenity to determine the most accurate estimate of your co-op’s value.
Co-op Appraisal FAQs
What is a co-op appraisal?
A co-op appraisal is a professional valuation of your shares in the corporation that owns your apartment building. New York and Connecticut law requires it to be based on the sales comparison approach — recent sales of comparable co-op units — not on rental income or what you could list your unit for.
What’s the difference between a co-op and a condo appraisal?
With a co-op, you own shares in a corporation and a proprietary lease to your unit; with a condominium, you own the unit itself as real property. Hudson View appraises both — see our condominium appraisal page for condo-specific details.
If you would like to learn more, please visit the FAQs section, or contact us today to Get Started. Or visit us on LinkedIn. Use our services for managing your co-op and condo appraisal needs in the New York & Connecticut areas.
Hudson View Appraisal Services has many years of experience in the business, we have a proven track record of reducing lenders aggravations, efforts, and costs in managing the appraisal process.
