Help! How Do We Determine Our Offer Price on This Condominium?
The home buying process can be relatively short or can take months and months of searching. This depends on many different factors but today I would like to address a question that many buyers ask.
How Do We Determine Our Offer Price on This Condominium?
There are many different factors that will determine your asking price for your condominium purchase. Let's look at these factors in the form of a question.
How does this property compare to others that are similar that are currently on the market, in escrow or recently sold?
What does similar mean?
If you are considering a a condominium/townhome you will have a much different approach in addressing the similar factor than a character or custom home.
With a condominium or townhome you take into account:
location within the complex or the community
- in mid-rise condominiums, first floor units may have larger patio or garden spaces making them desirable for pet owners or the green thumb gardener. Upper level units may have higher or vaulted ceilings enhancing the appeal. Units in the middle, typically have less appeal.
- in high-rise condominiums, the higher the floor, the higher the value. Would you prefer living on the Penthouse level or ground floor?
- is there elevator access to the floor where the condo unit is located? If you have to use stairs to access a second floor or higher unit, typically this will be considered less desirable.
- view or lack thereof? Are you looking onto a greenbelt, the side of another unit or onto traffic?
- upgrades or lack of them versus the properties you are comparing
- what's the parking situation? Many condominiums offer no parking while others will be in a subterranean parking area. Will there be tandem parking for your home(two spaces for you but arranged one behind the other). Side-by-side parking is more desirable. Two or more spaces obviously nicer than one.
- while any factor may not be important to you, think of resale. If you have to sell will this be an issue with a potential buyer
- is the building a former apartment building converted to condominums? When a building was not constructed as a condominium there issues you will want to know including noise levels.
- how do the common areas common to other complexes. Look at these areas critically.
Your agent should provide you with units currently on the market for sale, in escrow and recently sold either in the same complex and in similar complexes(if there is not enough sales data). By reviewing this information, you willhave additional knowledge to determine your asking price for your new condominium.
Of course there are other factors that determine your price and we will address those at another time.
Help! How Do We Determine the Offer Price On This Condominium?
For information regarding buying or selling property in the Pasadena, San Gabriel Valley or the northeast foothill communities within the city of Los Angeles contact Michael Jacobs at 818.516.4393 cell or michaeljacobs@coldwellbanker.com
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