Just as with other types of real estate, the value of a condo is determined by many factors. Of course, many of these factors are unique when it comes to condos and other homes with shared community space. Here’s what determines the value of high rise condo for sale
Location
Location is everything in real estate. High rise condos in busy urban areas such as downtown Boston are desirable and typically command a higher price than those in more open suburban communities. Nearby amenities are also important. Major power lines, busy roads, and industrial or commercial areas nearby may reduce the resale value of a high rise condo.
Space
Most buyers prefer a condo with at least two bedrooms for flexibility. If the second bedroom won’t be used by the owners, it can be rented out to reduce the carrying costs of the condo. One-bedroom condos can be difficult to sell. The premium on living space also extends to the outdoors. Units with balconies or patios are easier to sell with a higher value than condos without private outdoor space. Buyers also place a premium on parking spaces. Units that do not have a parking space can be challenging to sell. As a general rule, any unit with less than 700 square feet of living space will take a hit on its resale value.
View and Exposure
The view and sun exposure are much bigger factors with condos than with single-family homes. High rise condos for sale in Midtown/Downtown Boston with a great view of the city or a park will have a better resale value than one that overlooks an alley or neighboring building. Sun exposure is also important to many buyers. A condo with eastern exposure will not get sun in the morning, while a condo with western exposure won’t receive much afternoon sunlight. Condos with southern exposure have the greatest amount of sunlight.
Other Factors That Influence Price
There are many other factors that can play a role in a condo’s value:
- Nearby community features like bicycle facilities, walking trails, shopping, and public transportation.
- School proximity and school district.
- Condo fees – When a buyer considers a property, he or she must take into account the monthly costs of owning the property. In addition to the mortgage, the condo fees can represent a major monthly expense and may affect the condo’s resale value.
- Condo amenities – Many condo buildings offer amenities that may be attractive to buyers and increase resale value. These amenities may include a swimming pool, BBQ area, dog park, and fitness center.
Comparable Market Analysis
Whether you are buying or selling a condo, your agent will prepare a comparable market analysis to determine the fair market value of the condo based on market conditions, current competition on the market, and comparable sales of similar condos in the area. Sales within the same building are usually the starting point and give the most accurate values.