(Photo: David Leventi)

Anatomy of an Appraisal

235 East 22nd Street, Apartment 4T.
700-square-foot one-bedroom, one-bath co-op in a prewar doorman building.

To evaluate this apartment, Miller looked at sales of one-bedrooms in the building and nearby in the past year. (This practice is called paired sales analysis.) Then came adjustments, relying on data Miller has amassed; if two co-ops have sold for different prices and are identical but for a fireplace, for example, he can isolate its value. Comparing 4T to the five most similar properties (out of 35), and adjusting for the condition, Miller pinned down the price.

HIS TALLY SHEET
$711,000 (The recent sales price for 3H, and starting point for the calculation)

+ 3,000 (because 4T is one floor higher)

+ 35,600 (because of the condition of the apartment, which is good)

– 146,300 (because it’s 225 square feet smaller than 3H)

– 15,000 (because 4T has no fireplace; apartments in the same line do, starting on the fifth floor)

+ 25,000 (updated kitchen)

+ 15,000 (renovated bath)

+ 1,700 (because the closest comparable properties are priced a little higher)
________

$630,000

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