How To Appraise a Condo Building

Appraising a condo building might be required when the owner is seeking a second mortgage or when an interested party is seeking a mortgage to purchase a condo. Banks typically will not issue a loan for any real property, unless it has been appraised by a licensed real estate appraiser.

1. Get comps. Before a condo building can be appraised, comps, or comparison, condos must first be evaluated. This means that the bank wants to see how comparable condos in the neighborhood have priced out. Condo buildings with similar square footage, amenities and features will typically be priced similar, and banks and mortgage companies generally require the appraiser to submit their comp findings before a loan will be issued.

2. Hire a licensed appraiser. You cannot appraise your own condo building when seeking a mortgage or refinance loan. The bank will only accept the appraisal from a licensed real estate appraiser to do the job. If you need names of reputable condo appraisers, check with a real estate office, because they work with appraisers often and can give you the names of reputable individuals or companies.

3. Make it look good. When having your condo building appraised, it's always prudent to spruce it up as much as you can. Cosmetic upgrades and a thorough sprucing up of the landscaping can significantly increase the amount of your appraisal, as sometimes the appraisal can be somewhat based on the "curb appeal" of the condo building. Not only must the outside of the building look pleasing, the individual units should be updated and cleaned as well to ensure that your condo gets the highest appraisal possible.