Condo living is a whole different ballgame compared to life in a traditional site-built home. The high-rise urban life generally comes with a list of amenities you wouldn’t find in a typical house, not the least of which is a thought-provoking view from hundreds of feet in the air. As you gaze out over the expanse, however, you might just wonder what the view is like from the penthouse at the top. Can that guy see farther? And do the people way down on the third floor have to look out their bedroom window at a parking lot?
Where traditional homeowners may have multiple views out of their home, condo owners generally have one view to live with. What a prospective condo buyer sees out the window has a direct impact on what that buyer is willing to pay: the greater the view, the greater the sales price. And the higher the floor, the greater the view. But how do we quantify a price difference in identical condos where the only difference is the view? Well… spreadsheets!
Looking at sales data helps weed out that pesky emotional connection that some buyers and sellers have with properties. And since no two condo units are precisely the same, spreadsheets help display averages, correlations, and patterns to help us interpret how a certain mix a features may affect price.
Presenting… A summary case study of the last 60 days of MLS activity at Nashville’s Twelve Twelve condo development. As most of these condos have already sold to their initial buyers, a healthy handful of them are now turning around for resale. It’s easy to find a correlation between a condo’s floor number and its dollars-per-square-foot. On average, units on the top half of the building sell for $118 per square foot more than units on the bottom half. What’s more, the corner units add an entirely new panoramic that increases the value in buyers’ eyes, $132 per square foot to be exact. And if you’re the lucky seller of a unit that is both on the top half of the building AND with a corner window, well… you’d have a winning combination for maximum value!
Twelve Twelve also ties parking spaces and storage units to their condos, additional variables that can skew prices. Luckily I have cross referenced the MLS descriptions to verify parking capacity and storage unit status so we can take that into account. 😉 So without further ado, I now present the following table of nerdy real estate goodness! Feel free to reach out to me with any questions on specific unit numbers or if you’d like further analysis on additional property.
All the best,