Condominium Termination Valuation & Consulting
Specialized appraisal, appraisal review, consulting, and expert support for Arizona condominium termination matters.
A termination is not simply a group of ordinary unit appraisals
The appraiser may need to value individual units, limited common elements, and common-element interests while also understanding a proposed collective sale, redevelopment potential, and the economics of the condominium property as a whole.
Those questions are related but not interchangeable. Project-level economics do not automatically establish the market value of every unit, and individual unit values do not necessarily explain the purchaser’s interest in the property as a whole.
Repeated work across separate termination matters
That experience has allowed Bailey Valuation to develop and refine a termination-specific methodology through repeated application.
Individual interests and project economics must be kept distinct
A.R.S. § 33-1228 and Cao v. PFP Dorsey Investments, LLC
Arizona law places appraisal directly into the termination process and provides procedures for a second independent appraisal and, when statutory conditions are met, arbitration. The statute also makes methodology disclosure relevant to the dispute.
In Cao, the Arizona Supreme Court addressed a termination in which the condominium property was required to be sold as a whole under the circumstances before it. The Court did not prescribe an appraisal methodology. Bailey Valuation’s methodology addresses the valuation distinction implicated by that framework: individual ownership-interest value must be analyzed separately from the economics of the condominium property as a whole.
The analysis is independent of the retaining party
Bailey Valuation may be retained by an association, an individual unit owner or group of owners, legal counsel, a prospective purchaser, or another stakeholder, subject to conflicts and the role established for the assignment.
Presented on condominium termination valuation
Ryan R. Bailey presented on condominium terminations at Condemnation Summit XXX in Phoenix in 2023, an educational program attended by attorneys, appraisers, and other professionals involved in complex real estate matters.