Market Value

The top factors that will impact the price of your condominium is its comparative market value, the location of in your unit in the building or complex, the general condition of your community, any privileges assigned to the unit, and the general economic influences in the community and economy at large. 

Comparative Market Analysis

The majority of realtors determine the sale price of your condominium by completing what is called a comparative market analysis.

The comparative market analysis (CMA) provides an estimate of a property’s value based on the recent sale price of similar units in your condominium or nearby complexes.  The realtor’s job is to find three to five similar condominiums in your market area and then to prepare an objective report that compares their features and sales price for your review This report will be used in determining the market price of your unit along with other inputs based on the particular circumstances of your sale.

Doing a CMA on a condominium unit is unique in that many times there are carbon copies of the unit in the building and or complex that have sold with prices that vary substantially based on factors that are not usually considered in an everyday CMAs.

Location in the Building or Complex

Normal CMA’s take into account: location, square footage, bedrooms, bathroom, age and condition, architecture style and unique features of the unit.  But when it comes to location things begin to differ wildly for a condominium.  The geographical location of a property impacts its’ market value for all real estate but, for condominiums where a unit resides in a building or complex makes a large difference in market value.

The view of a unit, its floor level, privacy and security tend to add to market value.  As well as proximity to the amenities such as:  restaurants, gyms, pools, saunas, and recreational facilities.

Conversely, being next to laundry rooms, trash shoots, dumpsters, maintenance areas and or elevators, fire exits, parking garages and noises areas of a community may decrease the market value of a unit.

To complicate things even further, some potential buyers may desire somewhat marginally appealing areas based on personnel needs or preferences.

General Condition of Community

Hopefully, your community will be well maintained and not in need of substantial structural repairs and remodeling and that you have adequate financial reserves on hand.  Although being in the middle of a major facelift or renovation that can be viewed by potential buyers will usually help in boasting the value of your unit.

Privileges Assigned to Unit

Special privileges assigned to units can also impact the market value of a condominium.  Some units in a complex may have assigned parking, or multiple parking spaces.  Some may have none.  Extra storage space is another privilege that may be assigned to a unit.  Pool side or beach cabana assignments may come with a unit too. 

General Economic Factors that will Impact Price Trends

Pricing trends in a particular real estate market are impacted by the following:

• The interest trends and lending underwriter loan policies rule supreme in this impact of the pricing of real estate.  Especially when rates are changing at a fast pace. 

• shortage of available new listings and new construction also has a dominate impact on pricing

•  The perception that area is on the upswing or downswing of economic growth with impact both the demand and pricing of your condominium.  Likewise crime or job opportunities.

•  The stock market, demographic trends, and general customer census about the economy

Coming up with the market value of your condominium requires that all these factors are considered when determining the asking price of unit, how quickly you need to sell and what your financial circumstances additionally come into play during this process.  A good experienced realtor will take all to these factors into consideration when deterring the right price for your condominium.