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Multi-Family Valuations

Multifamily housing continues to be one of the most successful real estate products since the economic downturn. 

Appraising an apartment can be challenging. There are many factors that a commercial appraiser must deal with when taking on an apartment appraisal assignment. It is imperative to understand these factors as it will affect the appraisal. For example:

  • What is kind of apartment is it? Garden Style Apartment? High-Rise? Modern?

  • Is there a manager on-site?

  • What amenities does it have? Pool? Clubhouse? Spa? BBQ? Gym? Laundry room? How do the amenities compare to other nearby apartment complexes?

  • Is it rent controlled?

  • Is the contract rent at market?

  • What is the parking ratio? Is there adequate parking? Is the parking covered? Are there carports? Garages?

  • Condition of the building? (subject property vs. other apartment properties)

  • Is there deferred maintenance? If so, how much will it cost to cure?

  • What are cap rates for apartment properties in the market?

  • What are the most recent sale transactions of comparable properties in the neighborhood?

  • How do the bathrooms, living rooms and bedroom at the subject compare to other apartment complexes?

  • What are the neighborhood demographics? Household income levels? Population density?

  • How does the unit mix compare to other apartment complexes? Studios? 1BD/1BA units? 2 BD/2BA units?

  • What is the sales and ownership history of the subject property?

  • What are the property taxes? Is it over assessed?

  • What are asking rents, vacancy, net absorption of the submarket and market?

  • Are they any proposed or projects under construction that will compete with the subject?

  • What are the operating expenses of the subject property? How does it comparable with other apartment properties?


As you can see, appraising apartment complexes can be challenging. It is extremely important that you use a qualified, competent and experienced commercial appraiser for all apartment appraisal assignments. New Jersey Realty Advisory Group, LLC has over 30 years’ experience appraising multi-family properties in New Jersey, anything from 4 units to 400 units.

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