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The question is simply whether one can use the interpolated share price to value a co-op (similar to infrequently traded corporate stock) instead of a direct appraisal.

At a gut level, I can't dismiss it entirely, but I would put that valuation method lower on the totem pole than an appraisal.

The problem I have is that corporate stock is fungible. A share is a share is a share. There is no difference between shares.

In a co-op, my understanding is that shares ARE different. These shares allow you to occupy one specific unit. Other shares allow you to occupy a different unit. And at some level, each unit is going to be unique. Even if they're the same size and layout (and there are almost certainly different sizes and layouts) they'll be on different floors of the building, or different sides, in different conditions, with different neighbors.

If you didn't have an appraisal, I might use an interpolated share value. Then again, interpolating share values isn't all that different from dealing with comparable sales. Different share counts might account for different unit sizes, so that difference would be accounted for in the per share price. That still leaves condition and location unaccounted for with a simple interpolation. And a more traditional appraisal might try to factor those in to the appraisal.

In short, I'd say that an interpolation is better than nothing, but I'd hesitate to argue that provides a better valuation than a contemporaneous appraisal.

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