A Miami Beach appraiser is valuing a luxury condominium in a building where 60% of units are owner-occupied and 40% are short-term vacation rentals. The HOA allows both uses. For the sales comparison approach, what type of comparable sales should receive primary consideration?
Correct Answer
C) Sales reflecting the mixed-use nature of the building
The appraiser should use comparable sales that reflect the mixed-use nature and highest and best use of the subject property, considering both owner-occupied and investment potential. Using only owner-occupant sales ignores the investment component. Using only investor sales ignores the owner-occupant market. Sales from 100% owner-occupied buildings don't reflect the subject's mixed-use characteristics.
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Previous Question
An appraiser in Naples is using the sales comparison approach for a waterfront home. A comparable property sold for $2,400,000 six months ago. The subject property is superior by $150,000 for view and inferior by $75,000 for age. Market conditions have increased 3% since the comparable sale. What is the adjusted sale price?
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When applying the income approach to value Florida investment properties, an appraiser must consider all of the following income and expense items EXCEPT: