Practice Area
Partial Interest Valuation
Valuation of fractional or shared real estate ownership based on the rights, restrictions, benefits, and marketability of the interest itself.
The Interest Being Valued
A percentage of ownership is not automatically the same percentage of value
The value of a partial interest depends on the rights that accompany it. A minority or undivided interest may have different control, income, transfer, partition, occupancy, financing, or exit rights than ownership of the whole property.
The legal rights and restrictions are established by the ownership documents and applicable law. The appraisal analyzes how market participants would view that specific economic position.
Issues That May Affect Value
The ownership structure matters
ControlAbility to influence sale, financing, management, occupancy, leasing, or other property decisions.
MarketabilityThe market available for the interest and the practical difficulty of transferring it.
Partition & Exit RightsRights, costs, and limitations affecting an owner’s ability to separate or liquidate the interest.
Income & ObligationsThe share of income, expenses, liabilities, and other economic benefits or burdens associated with the interest.