A New York appraiser is valuing a condominium unit in a building where the sponsor still owns unsold units. How should this factor be considered in the valuation approaches?
Correct Answer
D) Consider sponsor sales but adjust for potential differences from resales
In New York, sponsor sales (new sales by the original developer) should be considered but may require adjustment because they often differ from resales in terms of pricing, financing incentives, upgrades included, or market conditions. A careful analysis comparing sponsor sales to resales provides the most accurate valuation.
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