Condo vs. Apartment Unit Value Comparison. Should I convert?

[David Zheng]

Hi All!

So I'm looking at whether I want to buy this apartment building or not and so far most of the recently sold units were condos.

I'm wondering what the value comparison is for this 3 unit multifamily is...

Say we have 2 building for sale that are identical. both are 3 story (1 unit on each floor) buildings

Building A is just a multifamily building sold together as an apartment (for rentals)
Building B is comprised of three separately taxed and parceled units.

If we consolidated the value of each "condo" in building B plus the common areas and got a number of $600,000

What can I expect the value of Building A to be? Will it be the same, more, or less?
Also if I may ask you to give me a good idea of what you think it will be. I hate vague answers so please if me your opinion. (like A would be 500,000 or I think A would be 80% of what B is worth)

[Andrew E.]

David,

That's a good questions. So I'm assuming both building A and B are configured to be able to sell as separate units sch as individual meters, kitchen and bathrooms, in other words they meet your areas zoning code standards to be sold separately. If this is true then I would also assume they are identical buildings in all aspects. With a value of $600,000 for building B I wouldn't assume a percentage value for building A.  For example a simple duplex in my area that is on two separate parcels would cost $200K each for a total 400k. A similar duplex on one parcel would cost only 300-350k. I hate to be vague like you asked not to be but since this is not a commercial property I would use comps and past property assessment between the two building to give you a better idea. There can be many factors influencing the buildings value too much to just use a percentage estimation. My two cents, hope that helps a bit.