howard, Other/Just Looking in 49659

Getting accurate appraisal of condo in Chicago Edgewater area

Asked by howard, 49659 Sun Dec 8, 2013

In Chicago Edgewater area I am looking to buy my mother's half of the condominium where she lives. I know of 3 sales of the EXACT same unit in the SAME building within 1 year of each other within the last 2 years. The highest valued condo sold for twice the value of the lowest. The third condo sold for about the average of the two. Since all three are exactly the same layout but only on different floors, how do I determine an accurate value for the unit? What are possible reasons for such disparate value? Differences in how the unit has been updated? What else? How would an appraiser be able to determine an accurate value, a "current market analysis", since he/she can't look inside any of the already sold units?

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13
Sam Sharp, Mortgage Broker Or Lender, Chicago, IL
Mon Dec 9, 2013
Contact an agent to perform a CMA -
If you are going to finance the property then speak with a lender. They can order the appraisal for you and you will avoid having to pay twice for this expense.
Sam Sharp
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2 votes
Joe Schiller, Agent, Chicago, IL
Mon Dec 9, 2013
you should pay for an appraisal.. you have no qualifications to interpret the data
1 vote
Mark Malave, Agent, Chicago, IL
Sun Dec 8, 2013
Anything over 6 months cannot be used. An appraiser will know what the comps are like if they know the area. I specialize in the city North of Irving Park, so I know the area very well. Feel free to email me details and I can put together a CMA for you. Mark@markmalave.com

Regards,

Mark Malave
1 vote
Jacqueline S…, Agent, Chicago, IL
Sun Dec 8, 2013
Email me the property address and unit number and interior pictures. I will do a sellers CMA for you. You should still get one from an agent who lives or does a lot of sales in that building. I will check the MLS and give you several names of agents who work that building and you can see if they will also do a CMA for you.

Jackie_smith_mba_cpa@msn.com
1 vote
Matt Hoyt, Agent, Highland Park, IL
Sun Dec 8, 2013
Use comps within 4 months in a close quarter mile radius. Updates are key. You need to use the most recent sales in the area.
1 vote
Matt Laricy, Agent, Chicago, IL
Sun Dec 8, 2013
Have your agent do a CMA. This will give you an accurate opinion. Floor, view, upgrades, layout, condition, etc are all factors for this.
1 vote
Dirk Gould, Agent, Chicago, IL
Sun Dec 8, 2013
Those older sales in the building are irrelevant. Use comps only within the last 3-6 months. Look at other units within four blocks if your building if you dont have any recent comps within the building.
1 vote
Noah Seidenb…, Agent, Evanston, IL
Sun Dec 8, 2013
Hire a professional appraiser and or have a Realtor you trust do a CMA (Comparative Market Analysis).
Good luck.
1 vote
Santiago Ken…, Agent, Chicago, IL
Sun Dec 8, 2013
Try to used only condos that sold in the last 90 days with the same sqf and the same biulding .
1 vote
Philip Sencer, Agent, Chicago, IL
Sun Dec 8, 2013
The market has taken a HUGE change in the past 12 months. Comparables that are older than that are irrelevant. I usually only go back 6mo to find comps these days.
1 vote
Santiago Ken…, Agent, Chicago, IL
Sun Jan 19, 2014
Sometimes they are not allow to take comps if those are foreclosure or shortsales and they only can use regular sales.
Aveces los peritos en Chicago no pueden comparar con casas reposeidas y ventas cortas .
0 votes
joy.r.sinegar, , Chicago, IL
Sun Jan 19, 2014
An appraiser would only use comparable sales and if the units in the building sold through a realtor at some point, he would be able to determine the specs of those units by reviewing data on the MLS.

If there was a short-sale, unfortunately that will be factored into the determination of value as well. It sounds like there may have been a foresclosure or short sale on the lowest unit.

Hire a professional appraiser or ask an agent to do a CMA.
0 votes
howard, , 49659
Sun Dec 29, 2013
No one has really answered my questions.

I understand the answer about that the market has changed in the last two years but that does not invalidate these questions:

How would an appraiser be able to determine an accurate value, a "current market analysis", since he/she can't look inside any of the already sold units?
What are possible reasons for such disparate value?
0 votes
1) Appraisals are an art; not a science. Since an appraiser can't go inside the units from past sales, he/she uses photos, descriptions, room sizes, upgrades, etc to determine the most appropriate value.
2) The main reason for big differences in value is timing. The markets over the last couple years have dramatically changed in value. Even just 6 months may affect the value of the property by 10%. Some of the lower comps used in on appraisal will be outdated and not be used in the subsequent appraisal (even if the units are located in the same building). Appraisers will not use a comp within the building if it is over a year old, and many won't go back further than 6 months. I hope this clears things up, even if it is not the information you wanted to hear. I know from my own experience that this can be VERY frustrating.
Flag Mon Dec 30, 2013
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