Market Discounts for Undivided Minority Interests in Real Estate

  • December 21, 1988
  • • Written by:  Peter J. Patchin, CRE 

Real Estate Issues Fall-Winter 1988-3

Abstract: Undivided minority interests in real estate seldom sell by themselves or separate from the sale of the entire property. Consequently, there is an extreme lack of market data concerning the sales of such interests. Research described in this article indicates the amount of the discount depends upon the circumstances surrounding the minority interest that is being valued.