Appreciation disparity (Boston, Brookline: for sale, real estate, condo)

[MikePRU]

OK all of my amateur real estate agents! Curious to hear your thoughts on what I would consider an interesting situation.

Back in October 2016, I listed this property for sale:

https://www.realtor.com/realestatean...5_M41577-90811

It received multiple offers and sold for $900K. In June 2019, the folks who bought it from me listed it for sale and sold it for $1.1M.

Three months after I listed that unit in January 2017, I listed for sale this condo:

https://www.realtor.com/realestatean...5_M48916-47494

It sold for about $820K and again there were multiple offers. By chance, the folks who bought this unit from me also listed it for sale in June 2019. This property sold for $865K.

So, one unit appreciated about $45K and the other appreciated $200K. Seems like quite a disparity. The units themselves are quite similar and have very similar floorplans. They also have very similar locations and are located only about 4 buildings apart. The main differences are 1st floor vs. 3rd floor and 2 full baths vs 1 full bath. The Claflin Rd building in general was better cared for although the units themselves were both in similar condition.

Why did one unit appreciate 5.5% while the other appreciated 22%? What do you think? Is this reasonable in your opinion?

[yesmaybe]

1st floor versus 3rd is a big deal. Third Floor might have paid too much though.

[simplexsimon]

I assume since you posted this here that these kinds of disparities are uncommon in real estate.

I think we are missing some information.

[simplexsimon]

Originally Posted by yesmaybe

1st floor versus 3rd is a big deal. Third Floor might have paid too much though.

I think the first floor unit was the one that sold for $1.1 million.

[wolfgang239]

Rawson has $300/mo more of an association fee, one less bath, top floor.

[MikePRU]

Originally Posted by wolfgang239

Rawson has $300/mo more of an association fee, one less bath, top floor.

The higher condo fee is due to the fact that the Rawson association maintains a "rainy day" fund for building expenses. The Claflin Rd association issues special assessments every year as their monthly fee usually doesn't cover all of the expenses (at least this was true a few years back when I listed this unit).

If you look at the financials of each building by the end of the year you're essentially out of pocket slightly more on Rawson Rd but only because that extra money is going into the association's reserves.

So your feeling is one unit should appreciate 4x compared to the other because it's on the 3rd floor and has one less bath?

[MikePRU]

Originally Posted by simplexsimon

I assume since you posted this here that these kinds of disparities are uncommon in real estate.

I think we are missing some information.

In my mind, these are fairly similar units and the differences between them don't justify a $250K price differential. For that kind of money, I'd walk up two extra flights of stairs and figure out a way to install a second bathroom. The two units had almost the exact same floorplan except the Rawson unit had a larger foyer instead of a smaller foyer and a full bathroom like the Claflin unit.

[wolfgang239]

Originally Posted by MikePRU

The higher condo fee is due to the fact that the Rawson association maintains a "rainy day" fund for building expenses. The Claflin Rd association issues special assessments every year as their monthly fee usually doesn't cover all of the expenses (at least this was true a few years back when I listed this unit).

If you look at the financials of each building by the end of the year you're essentially out of pocket slightly more on Rawson Rd but only because that extra money is going into the association's reserves.

So your feeling is one unit should appreciate 4x compared to the other because it's on the 3rd floor and has one less bath?

Not as the sole reason, although adding another would be insanely expensive. But I didnt have all the information you have now given us. That coupled with an extra $300 per month would definitely give me pause if I didn't know the background. So back to the drawing board.

[Shrewsburried]

Originally Posted by MikePRU

So your feeling is one unit should appreciate 4x compared to the other because it's on the 3rd floor and has one less bath?

I'd add to that the fact that the pricier unit appears to be in an architecturally "grander" building, which abuts a pretty posh row of brick and mortar buildings ... classic Boston aesthetic.

I.e., curb appeal. This said, 4x is a wide gap.

[karen_in_nh_2012]

I'm getting very confused by some of the replies ...

Originally Posted by MikePRU

...So, one unit appreciated about $45K and the other appreciated $200K. Seems like quite a disparity. The units themselves are quite similar and have very similar floorplans. They also have very similar locations and are located only about 4 buildings apart. The main differences are 1st floor vs. 3rd floor and 2 full baths vs 1 full bath. The Claflin Rd building in general was better cared for although the units themselves were both in similar condition.

WHICH ONE is on the 3rd floor -- the one with 1 bath or 2?

Originally Posted by simplexsimon

I think the first floor unit was the one that sold for $1.1 million.

But I think it is the RAWSON building -- the $865k one -- that is on the first floor since its listing mentions stairs to the basement? It has 1 bathroom.

Originally Posted by wolfgang239

Rawson has $300/mo more of an association fee, one less bath, top floor.

But this ^^^ says the Rawson building -- the one that sold for $865k -- is on the TOP floor.

OP, can you clarify? I don't see where EITHER listing says which floor the particular condo is on, but I may just be missing it?

I would think the extra bath AND being on the top floor would help the Claflin Rd. condo appreciate more than the other building ... but not 4x more!


(And Mike, I am curious: are these converted single-family houses (from decades ago)? If so, how is the soundproofing? I'd hate to spend a million bucks on a condo and discover I can hear my neighbor's TV or stereo! )