Components of Real Estate Pricing

Boston Luxury Condos for Sale in 2021

Boston Beacon Hill condos come in all shapes and sizes. In lower price ranges, Beacon Hill condos are excellent investments for first time home buyers. In higher price ranges, the Penthouses in Beacon Hill high rises are some of the most spectacular real estate choices that Boston condos have to offer. In every price range there are several things that all buyers interested in Downtown Boston condos must take into consideration: Construction, Condo Fees, and “The Big Three” components of value. When interviewing clients for the first time, we try to assist in prioritizing these three criteria to determine what is going to be the most important for their home. Why value is determined by the “Big Three”, a client’s particular preference will always be the most important. Within a certain budget and financial comfort level, Will a client make the decision to buy a larger square footage and sacrifice views? Will a client consider sacrificing on a prime location to buy more upgrades, square footage or orientation? These are the personal preference criteria that determine both the value and the personal choice of deciding on one’s home.

What Are The Big Three components of Beacon Hill Condo Value?

The value of a Beacon Hill condo is determined a little bit different from a traditional single family home. In order to help our clients generate a better understanding of the components of value, we have coined “The Big Three” criteria. These components of value are the most important aspects of any condo value, because they are criteria that cannot be changed. As a result, whether or not a condo can be upgraded or improved will take a secondary position to these three Downtown Boston Condo Criteria.

Square Footage:

The size of a Beacon Hill condo is one of the most important components of value. Most good realtors and brokers will always refer to the price per square foot in determining the value of a Downtown Boston condo. In many cases (views aside) the difference between a $100k Downtown Boston Condo and a $1m Downtown Boston condo will be it’s size. The most important sub component of the price per square foot is obviously the floor plan layout. We always tell our clients that when considering a purchase based on size…the number of the actual square footage and the “feeling” of the Beacon Hill condo layout is an important consideration. It is obviously going to be a better value to consider the 1000 square foot condo that feels like 1200 square feet…rather than the other way around. It is always important when viewing a condo for the first time to establish the overall floor plan layout of space. Try to take wasted space like irregular shapes, long hallways, extra sized entries, and ceiling height into consideration. While technically not considered in overall square footage size, ceiling heights and outside terrace/patio space can give the perception of lager size and more living space.

Location, Location, Location:

In any real estate transaction, location is always one of the top components of value. As a result, the neighborhood and location of a particular complex and condo will support the price per square foot. A particular Beacon Hill condo with a centralized location and proximity to amenities will always tend to have a higher value.

Upgrades, Orientation, and View:

The final component of the “Big Three” is a combination of several things. As with any piece of Downtown Boston Real Estate, the upgrades within a particular unit can always add to the value. With Beacon Hill condos the upgrades of floors, window coverings, and storage organization will add significant and lasting value over personal preference design upgrades. The orientation of any Downtown Boston Condo is also an important consideration. Does the unit get morning or afternoon sun? Does the unit have a street or interior courtyard orientation? The final component of value is the view. In most condo complexes the floor plan within a particular “stack” will always be the same. The view level and difference in value between floor levels will always add value to any Beacon Hill condo. The only issue with views are that it is a “relative” value source. Some may say it is a “million dollar” view, while others may think differently. Finally – despite our best comps and analysis – the market really determines the price – supply and demand – when the market is hot and inventory is light – prices escalate and when the market softens and inventory is plentiful, pricing softens. With all of these components – we strongly suggest utilizing a Beacon Hill Realtor or at least a Downtown Boston Realtor to help navigate your Real Estate journey – Give Janet a call at 617.721.9504 for additional help and information.