Determining A Condo’s Value
What to keep in find when determining the Value of a Condo
There are many methods that people use when determining a condo’s value (price per square foot, percentage of assessed value that places are selling for, percentage of list value that other places are selling for), but only one that really counts! If you are buying and thinking of writing an offer on a condo, you should primarily be concerned about what comparable units have sold for in similar market conditions. Here is a breakdown:
In an ideal world you would want to look at very recent sales of condos from the same building, with the same floor plan & finishing, and the same N/S/E/W exposure. Since it’s not usually the case that you’ll find such a perfect comparable, you and your REALTOR® will want to evaluate sales of units that may be larger or smaller, have upgrades, different exposure and be on different floors. You will need to rely on your REALTOR®’s knowledge of condos and condo buildings to make adjustments for differences.
Similar Market conditions
Any given market could last for as little as a few months or for well over a year. Your agent will be able to compare today’s market with markets that past sales occurred in.
While the sold price of comparable units should guide most of your thinking, you need to take into consideration what competition there is on the market. If you really like a specific area/building and the unit you’re looking at is the only one on the market then you may need to pay a little more than the sales would suggest. In contrast, if there seems to be a lot of similar products on the market then you may be safe trying a lower offer.
When determining a condo’s value, it’s always best to contact a condo expert. We will do our best to ensure you get the guidance you may need!