Determining the fair market value of a home in Boston

Value based on square footage

It seems as though wherever you go in Boston, another condo is being developed. With so many options, it can be hard to determine if you are getting a fair market value.

There are many factors that go into condo pricing. Is it new construction or recent renovation? Is there a view? How about a deck or yard? But one factor that you should strongly consider is the size and layout of the condo. How many square feet does it have and is it a good use of the space?

Boston can be a rather tricky real estate market to navigate. Depending on what neighborhood you want to live in, you could see condos priced in the millions or closer to $300,000. You may also find a distinct inconsistency in size and amenities.

In 2006, the average sales price in Boston was $494,823, with an average price per sq. ft. of $504 and an average condo size of 1073 sq. ft. Here is a look at the average price per square foot in four of Boston’s most popular neighborhoods:

- All statistical data was obtained from Boston Real Estate Market Report, by Elad Bushari & Mara Tamaroff of Boston Luxury Real Estate. Read more from this report.

If a potential home is priced significantly under the average neighborhood price per sq. fr., then you need to consider whether or not something is wrong with the unit either from a structural or legal standpoint. This is when having an experienced inspector and attorney makes all the difference. Both can protect you in the event the apparent bargain is not a good investment

In a real estate market such as Boston, it is important to know these statistics. When you know the average sale price, the average price per square foot and the average condo size, then you will be in a much better position to judge the value of a condo. If the price per square foot is significantly higher than the average, you need to consider what it is you are paying for, especially if that condo is smaller in size than the average.

While the average price per sq. ft. and average size is a great way to judge a home, the next step is to look at what else you are paying for. “Amenities” such as parking a roof deck or patio, and a view are rare in Boston. Its up to you to decide if such amenities are worth the cost.

There are some people in this city willing to pay for these amenities and sacrifice size. Here is a look at some extreme examples from the South End.

A single family home on Cumberland St. in the South End is being sold for $2,950,000. That’s about $787 a square foot. This home is one block from the Prudential Center and Shaw’s Supermarket. It is also one and half blocks from the Christian Science Church Park.

Then a 4,710 sq ft single family home on Charles St. in the South End, being sold for $1,985,000. That’s about $422 per square foot. This home also has access to a private garden, a true luxury in any city.

So why is there such a large price discrepancy? The Cumberland St. house is almost 1,000 sq ft smaller than the Charles St. home yet costs almost a million dollars more. One reason could be location. Being only one block from a major shopping center that houses the only supermarket in the city, is a great advantage.

While the Charles St. house is larger and less expensive with a private garden, it is also less than one block from Columbus Ave, a major thoroughfare. Additionally, there is a large construction project happening on Columbus Ave that could take several years to complete. The Cumberland St. home is far enough away to not be directly affected by the project.

But not all of us will be buying million dollar condos; for most, a target price range will be around $750,000. A real estate lawyer can review the offer prior to submitting to the seller and will provide protection against unnecessary risk.

This can be especially important if the condo is significantly under priced. Because there is the risk that something is wrong with the home, it is important to have a real estate lawyer who can ensure you are protected.

The real estate attorneys at Parker Scheer LLP have the experience and knowledge to guide you through the home buying process and will make certain your rights are protected.

Contact a Boston Real Estate Lawyer

For more guidance on real estate law, or if you are looking for a real estate attorney in Boston, please contact us. If you prefer, you can also telephone our offices in Boston seven days a week at toll free 866-414-0400.

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