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I know the gist of it is that you take your property and compare it to others that are similar within a specific radius. But what happens when you live in a condo building?
For example, I live in a studio condo, it's about 620 square feet. A condo in my building sold for $280K 2 months ago, but it's a 1 bedroom/1 bathroom. The studio I have is bigger than the 1 bed/1 bathroom condo. However, another studio, which again is smaller (I think 500 square feet) than mine sold for $235K. So I'm just a little confused. The 280k condo sold for more because it's a 1 bedroom, but at the same time it's also smaller than mine. Based on the description, it doesn't include a parking space which would bump the price up a bit higher.
IDK...if I had to guess the asking price would probably start off at around 250K, with the max price maybe being 270K? Would that make sense?
Just a couple of more notes, I live in DC which has a pretty active and bullish real estate market, and the condo building, while old, is about a block away from a $2 billion development that is set to start this month. I'm not trying to sell now, but it's a definite possibility within 18 months and I'm trying to guesstimate how much I can sell it for. I'm an optimist, but even I would think there's a cap on how much a studio condo can sell for regardless if it's near a development or not.
Anything can happen in 18 months so comps do you no good right now. Wait until you're a couple month from selling and interview a couple listing agents. They will tell you the comps.
Condos are far easier than SF homes when it comes to comps. One can easily pull-up all of the sales in a particular Condo on their County Tax Appraisers office. Then by comparing dates and sales, one can pretty easily see the trend and cost-per-sq. ft ratios. Beyond that, it's relatively easy to determine if there have been real (or cosmetic) upgrades.
My experience in both selling and buying Condos has shown a real consistency in actual sales.
In your case, a 1 Bdrm Condo with a deeded parking space is typically going to demand a much higher rice than a Studio, for which there will only be a very limited market. I've seen the same thing in Condos where there are a few much smaller units, in the midst of much larger units.
Condos are far easier than SF homes when it comes to comps. One can easily pull-up all of the sales in a particular Condo on their County Tax Appraisers office. Then by comparing dates and sales, one can pretty easily see the trend and cost-per-sq. ft ratios. Beyond that, it's relatively easy to determine if there have been real (or cosmetic) upgrades.
My experience in both selling and buying Condos has shown a real consistency in actual sales.
In your case, a 1 Bdrm Condo with a deeded parking space is typically going to demand a much higher rice than a Studio, for which there will only be a very limited market. I've seen the same thing in Condos where there are a few much smaller units, in the midst of much larger units.
But all things being equal, the 1 bedroom condo has no parking space, is smaller than my studio, yet sold for more. Could I realistically make the argument that I can price it for 280K? I'm taking NinaN's advice and wait, but I've always been curious about this.
There is a big functional difference between a studio and 1 bedroom. I'd consider comping it against the other studio and add for the square footage and garage. Can you turn your studio into a 1 bedroom? It might be worth looking into.
Last edited by thelopez2; 03-17-2014 at 10:35 AM..
There are numerous factors that determine the price of condos. Things like what sorts of views a unit has, how modern /updated it is compared to others (especially the baths / kitchens and other laundry) as well as useful the unit for entertaining can all have MAJOR impacts in valuation.
I have been in condos in the heart of Chicago's "Gold Coast" that offer such fantastic views and would really be suitable for hosting parties of wealthy / powerful people for a big fundraiser that it is no surprise they cost millions. Literally a few floors down and with views of only an uninteresting alley / side of a building the units might be worth a fraction...
Condos are far easier than SF homes when it comes to comps. One can easily pull-up all of the sales in a particular Condo on their County Tax Appraisers office. Then by comparing dates and sales, one can pretty easily see the trend and cost-per-sq. ft ratios. Beyond that, it's relatively easy to determine if there have been real (or cosmetic) upgrades.
My experience in both selling and buying Condos has shown a real consistency in actual sales.
In your case, a 1 Bdrm Condo with a deeded parking space is typically going to demand a much higher rice than a Studio, for which there will only be a very limited market. I've seen the same thing in Condos where there are a few much smaller units, in the midst of much larger units.
How is it easy to determine if there have been real or cosmetic upgrades? That information would not be listed in a list of comps. Wouldn't a buyer or real estate agent actually have to visit those condos to see if upgrades have been done?
How is it easy to determine if there have been real or cosmetic upgrades? That information would not be listed in a list of comps. Wouldn't a buyer or real estate agent actually have to visit those condos to see if upgrades have been done?
For homes and some condos, you may be right. Still, a baseline price among condos in the same complex can be pretty easily established. Even without seeing the unit/s, one can pretty much assume that most condo upgrades in a complex under 10-years will pretty much be cosmetic. Also, pictures are typically included for most properties/condos listed in MLS, so that one can validate this assumption without having to personally visit each unit.
For homes and some condos, you may be right. Still, a baseline price among condos in the same complex can be pretty easily established. Even without seeing the unit/s, one can pretty much assume that most condo upgrades in a complex under 10-years will pretty much be cosmetic. Also, pictures are typically included for most properties/condos listed in MLS, so that one can validate this assumption without having to personally visit each unit.
I thought that comps for condos were all the condos in a particular area that are comparable to the condo one is trying to sell. That would include condos in other complexes that are within a certain radius, wouldn't it?
I thought that comps for condos were all the condos in a particular area that are comparable to the condo one is trying to sell. That would include condos in other complexes that are within a certain radius, wouldn't it?
Sometimes yes, sometimes no.
Generally, comps from the same building are the best. But, if there are any particular features, such as condition, view, size, etc., then the best comps may be in a building nearby or even miles away.
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