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Residents can even check up on the recent sale prices of comparable apartments.
To determine the asking price, Mr. Kolbusz checked the prices of comparable apartments in Ms. Stivaletta's building and nearby apartments on the market.
In a rising market, appraisals tend to lag behind asking prices because they are based on past sales of comparable apartments.
As for the price of the additional shares, he added that ideally it should be based on the price per share for recent sales of comparable apartments in the building.
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Under the law, the landlord can show rents for comparable apartments to justify the establishment of the initial rent under stabilization laws.
Those rates, he said, are at least 30percentt lower than for comparable apartments in Manhattan.
The rents will be about 25 percent below those for comparable apartments in Manhattan, brokers say.
Comparable apartments of the same size had been selling for around $750,000, but Ms. Tribble decided to ask for $725,000, hoping to attract a buyer quickly.
The features of each comparable apartment were reviewed, and adjustments were made for differences between the comparable and the apartment being appraised.
Comparable apartments south of 96th Street rent for $1,700 a month, said Andrew Heiberger, president of Citi Habitats, a Manhattan residential brokerage firm and the project's leasing agent.
"What that means is that Martin Act tenants must be allowed to remain in occupancy of their apartments at rents that are comparable to other nonregulated rents in comparable apartments," Mr. Ng said.
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