Co-operative Housing Project Assessments
Assessment approach
We value equity co-operatives through the direct comparison approach, which analyzes sales of units within a co-operative building to calculate the total value.
- This approach involves the analysis of units that have sold within the co-operative building to determine an average selling price per square foot of unit area.
- The rate per square foot is applied to the total area of all the units in the co-operative complex, excluding the common areas, to arrive at an overall estimate of value for the property.
When there are a limited number of sales within the co-operative, a secondary approach to the direct sales approach is taken:
- Sales information of similar condominium units that have sold in the vicinity are considered.
- Where required, adjustments are made to reflect differences in amenities, quality, location and other factors proven to affect the value of the property.
We collect the following information for both condominium properties and equity co-operatives for the analysis:
- year of construction
- structure type (i.e. high-rise, townhouse, etc.)
- number of storeys
- number of units
- size of each unit
- total area of the complex
- suite mix (i.e. number of bedrooms per suite)
- quality
- a list of amenities
A downward adjustment of 10% is then applied to the co-op housing estimate to arrive at the property’s current value assessment.
This standard 10% deduction recognizes the difference in ownership structure between condominium property (i.e. fee simple) and equity co-operatives (i.e. shares).
Equity co-operatives are assigned one roll number with the co-operative housing corporation shown as the property owner. The individual residents or shareholders are listed as tenants of the corporation.
