What Factors Go Into Pricing a Condo?
Denver is still in the midst of a hot real estate market, and sellers continue to have the upper hand. In March of 2019, the average sold price of a condo in Denver was $360,875 (median $300,000). Condominiums are typically on the market for only 30 days.
As a result, many homeowners in downtown Denver might be considering cashing out on the equity they have built up over the past couple of decades. For those of you who own a condo in a high rise, there are four key components you have to consider before putting your condo on the market.
#1: On Which Floor is the Condo?
A good rule of thumb for determining the value of your condo is the higher up, the more valuable the unit. Most people prefer the status and exclusivity of living on the upper floors of a condominium high rise. Normally, units that are on the top floors are worth a significantly more. Units in The Four Seasons Private Residences for example, have almost a 70% difference in price per square foot between the lower units and the penthouses.
#2: What Kind of View Does My Condo Have?
This may seem obvious, but what you look at is very important and costly. There are some units that have expansive southwest views overlooking the mountains and offering some of the most beautiful sunsets on the planet. Some condos peer into the skyscrapers surrounding it with dramatic city view,s energizing its owner with the pulse of the city. There are also homes that have a front row seat to a parking garage or alley. Clearly, there is a price associated with different types of views.
#3: Which Type of Floor Plan Does My Condo Feature?
When developers design buildings, one of their primary objectives is to get the most sellable square footage out of a project to make the most money. Sometimes there are oversights, and while a floor plan looks good on paper, sometimes a key structural pillar needs to be put right through the center of the living room (seriously, this does happen). Here are some things to consider about your floor plan and how to price it:
- Two Bedroom Units that don't share walls are more desirable.
- Condos that have long hallways without much usable space can eat up a lot of the square footage.
- Walls or pillars may create obstacles to placing furniture effectively which create challenges for using space efficiently.
- Units with an extra half bath make your guests feel more comfortable and it's easier to entertain.
Understanding the floor plan in a building is crucial when pricing your condo for sale. Just because a unit with the same amount of square footage sold for a certain price, doesn't mean that yours couldn't sell for significantly more based upon a much more favorable layout. Make sure to enlist the help of a local real estate agent who knows your building. For example, The Glass House in Denver has over 100 different floor plans and it's imperative to recruit the help of a professional who truly knows all of the unique layouts to get you the most for your home.
#4: Does My Condo Have Access to any Special Amenities?
Living on a particular floor or on a certain side of the building can have its advantages and privileges which can equate to a higher sale price. Condos that are on the pool deck, for example, can garner a higher sale price because of the convenience of being able to entertain and barbecue all year round. Units in The Spire that are on Floors 9 and 33-42 have exclusive access to the Spire Sky Club which is a private penthouse lounge available only to the owners of units on those floors. This can increase the price of the condo by more than $100,000 for the same floor plan on a lower level.
#5: Know What You Have
There are some significant things to consider when pricing your condo for sale in a high rise. Make sure to take into account these variables when trying to sell. While you might think your unit is worth a certain amount based upon the price per square foot, make sure to not overprice and have your condo sit on the market for prolonged periods, or worse, sell for too little!
If you are thinking about selling your Denver condo, please contact us here at Usaj Realty. Regardless of the circumstances that are leading to your decision to sell your home, the process should be a painless and straight-forward experience that will help transition you onto your next journey. The realtors at Usaj Realty have the expertise and knowledge to be your partner in this exciting undertaking.
(Editor's note: This article was originally published in March 2017. It has been revised and updated to reflect current trends).
Posted by Anton Usaj
Anton Usaj is owner of Usaj Realty, and retired Downtown Firefighter. From courageously battling fires, to volunteering in the community, to his commitment to offer exceptional real estate services to those exploring the Denver market, he is praised for his heart-felt service to his community.Facebook LinkedIn Twitter