A 1,000 square foot condo sold for $510K last month. This month another condo in the same complex, with the same floor plan, same square footage sold for $530K. Why the difference?
Aside from the obvious fact that market demand at any given moment fluctuates in the number of buyers, interest rates, and properties available, which leads to pricing fluctuations in the market, there are other physical variables and conditions that will account for differences in sales prices among condo units in the same complex.
1 – Condition
Condition is the most obvious. Is the unit recently painted, clean, and in good condition? Has it been remodeled or renovated recently? Styles and tastes change and a property that has not kept up, will not be valued as highly as one that has been recently remodeled.
One of the areas that comes to mind is flooring. In the last few years, wood flooring and vinyl plank flooring have become more popular than carpeting. Another is lighting. LED lighting, recessed lights are a great enhancement to consider.
2- Location within the complex
Where is the unit located? Next to the dumpster? By the pool? In a quiet area away from main street traffic? Noise, pedestrian and vehicle traffic all play a role in desireability of one’s home.
3 – Level
Is the unit located on the ground level? Is there another family living above you? No matter how good a building’s insulation may be, there will always be some level of noise from other units. Sound from above to units below can be especially loud in some cases, depending who is living upstairs. A third level condo will likely have an elevated view of something, where a ground level unit may not enjoy as good a view.
4 – Neighboring units
Is the unit wedged between two other units? Then additional noise and reduced privacy can be an issue. Corner units will only have a single neighboring unit and hence will have reduced noise and increased privacy.
5 – Too many steps
A complex may have both single level units as well as units with multiple levels, hence a need for stairs. An older condo buyer may prefer a single level unit for obvious reasons.
6 – Floorplan
Two similar units with similar square footage may have a different floorplan. Floorplan differences may be more conducive to movement, space utilization, and lighting in one unit versus another unit.
These are some of the main reasons why condo unit prices may fluctuate within the same complex. If you have any questions abour pricing of a condo or townhouse unit, don’t hesitate to contact me.