Exterior-Only Individual Cooperative Interest Appraisal Report (2095)
The Exterior-Only Individual Cooperative Interest Appraisal Report (co-op) (Form 2095) is the form used for Exterior-only appraisals of individual co-op units. This six page form complies with the Uniform Standards of Professional Appraisal Practice (USPAP), Red Door Appraisal Management, LLC, and customer guidelines and provides for an exterior inspection of the subject property. The form also includes a concise analysis of the project and the market, and a value opinion. The co-op valued using this form may be part of the PUD. However, this form may not be used in valuing a manufactured home or a unit in a condominium project.
Co-ops are a unique property type. Valuation of co-ops requires valuing the cooperative interest (the co-op shares or other evidence of an ownership interest in the cooperative corporation and the accompanying occupancy rights (normally a proprietary lease). The value of the underlying blanket mortgage is excluded.
To Form 2095, appraisers must attach the following:
Subject property photographs (front, and street scene and any amenities substantially affecting marketability and/or value). Often a rear scene is not available and an explanation is required.
Comparable property photographs (front view).
Location may show accurate locations of the subject property and all comparables used (sales and listings).
Appropriate certifications and limiting conditions that are USPAP compliant.
When appraising a unit in a cooperative project, the appraiser should use the Sales Comparison Analysis and consider the Income Approach to value. Because of common building components and development improvements, the Cost Approach is not used in the valuation of an individual co-op unit.