Factors that may affect condo pricing

Posted by: Augustus

Factors that may affect condo pricing - 09/08/15 05:26 PM

Hello,

I just want to know the factors that may affect the pricing of a condo.

Arcasouth
Posted by: Vermont

Re: Factors that may affect condo pricing - 09/09/15 12:35 AM

Location, Age, Location, Security, Location, Square Footage, Location, Baths/Bedrooms, Location, View, Location, Schools, Location, Maintenance Staff, Location, Quality, Location, Amenities, Location, Highway/Mass Transit Access, Location, Parking, Location, Bylaws, Location, Storage, Location, Position in Complex, Location . . . . and others.

Did I mention Location ?
Posted by: JohnN

Re: Factors that may affect condo pricing - 09/09/15 09:35 AM

I think you mentioned location. grin
I just ran into a situation that greatly affected the price. The building was beautiful and in a great location. The building was 88% rentals. A small group owned all the units, controlled the HOA Board and since it was their money they didn't like to hold a lot in reserves.
I had buyers that were willing to put 20-25% down and we couldn't get a bank to touch it.
The Unit ended up selling for a $40,000 discount to the first cash buyer that came along.
Posted by: Vermont

Re: Factors that may affect condo pricing - 09/09/15 09:46 AM

I failed to mention HUD or FHA Approvals . . . . those make specific Condo Complexes more marketable and allow them to command a higher price (within the US and its Territories only, of course).
Posted by: Captain Mortgage

Re: Factors that may affect condo pricing - 09/09/15 11:04 AM

Originally Posted By: JohnN
I think you mentioned location. grin
I just ran into a situation that greatly affected the price. The building was beautiful and in a great location. The building was 88% rentals. A small group owned all the units, controlled the HOA Board and since it was their money they didn't like to hold a lot in reserves.
I had buyers that were willing to put 20-25% down and we couldn't get a bank to touch it.
The Unit ended up selling for a $40,000 discount to the first cash buyer that came along.


With 25% down a bank would only need a limited condo certification that excludes the budget and the number of owner occupied. I have to do these all the time with small complexes. When 3 people in an 11 unit association rent out their homes it becomes difficult for everyone else. What was the reason the bank gave you for not wanting the deal?
Posted by: JohnN

Re: Factors that may affect condo pricing - 09/09/15 01:38 PM

It was mainly the low reserves the HOA held. The owners didn't want to have a lot of cash tied up but the banks don't want to extend a loan when the buyer could get hit with a huge bill for a new roof or other repair.
Originally Posted By: Captain Mortgage
Originally Posted By: JohnN
I think you mentioned location. grin
I just ran into a situation that greatly affected the price. The building was beautiful and in a great location. The building was 88% rentals. A small group owned all the units, controlled the HOA Board and since it was their money they didn't like to hold a lot in reserves.
I had buyers that were willing to put 20-25% down and we couldn't get a bank to touch it.
The Unit ended up selling for a $40,000 discount to the first cash buyer that came along.


With 25% down a bank would only need a limited condo certification that excludes the budget and the number of owner occupied. I have to do these all the time with small complexes. When 3 people in an 11 unit association rent out their homes it becomes difficult for everyone else. What was the reason the bank gave you for not wanting the deal?
Posted by: jasonconferido

Re: Factors that may affect condo pricing - 10/27/15 08:00 AM

Aside from location, the image or reputation of the developer also affects the price of condos. If the developer is known in building luxury and quality buildings, a buyer should expect a pretty high price for this. Now, if the developer is known to build low-cost buildings, of course, the buyer can expect a pretty affordable price for a unit.
Posted by: P. Donnelly

Re: Factors that may affect condo pricing - 10/27/15 08:51 AM

Hello Augustus,

In the Asia Pacific market, it has been all about demand in Tokyo causing a hike in prices. After the yen weakened in October, thousands of Chinese buyers bought properties mostly in Tokyo, out of urban preference. This pushed up prices by 11% in just two years. But, even then, prices are still affordable compared to New York, London and Hong Kong. Therefore, prices are expected to continue to rise.
Posted by: MOMO

Re: Factors that may affect condo pricing - 11/08/15 12:25 AM

HOA quarterly/monthly assessments.
Posted by: goasya

Re: Factors that may affect condo pricing - 08/21/16 09:12 PM

Location,position of real estate cycle,interest rates,taxes,economy etc
Posted by: Mayra Kelley

Re: Factors that may affect condo pricing - 11/23/17 01:37 AM

Whether you are a buyer or seller of real estate, it is important to understand the factors that affect the market. This will help you make the right decisions, for the right location, at the right time. Here are some of the most common points to consider:
1. The position in the cycle of the particular real estate market will have a bearing on prices.
2. There is generally a direct connection between interest rates and prices. The higher the rates the lower the prices, and vice versa. The lower the rates, the more people who can afford to buy their first home or an investment property. This puts greater demand on the market.
3. Confidence in the economy is important to stimulate home buyer and investor activity.
4. Highly desirable locations will generally go up in price more quickly and consistently.
5. Certain times of year are traditionally slow months for residential real estate sales, hence prices decline.
Posted by: Earl_White

Re: Factors that may affect condo pricing - 12/17/17 08:46 PM

Location is extremely relevant to the pricing of a condo. Similar to other types of property, condition, amenities, views, rental restrictions can all impact condo value.

One consideration concerning condos that is often overlooked is the floor of the condo. Experienced real estate professionals very well know the difference in story can result in up to double the price (if not more in some HOA communities, like the Cricket Club in Miami).