Why pricing a Beacon Hill condo based on price per sq ft may not be wise

Boston Condos for Sale and Apartments for Rent

Why pricing a Beacon Hill condo based on price per sq ft may not be wise

Basing your offer price largely on square footage is not something I recommend doing. Though price per square foot is a frequently referenced data point when it comes to Boston condos for sale, it’s a notoriously unreliable metric.

We live in a city that’s by no means cookie cutter. There’s no standardized square footage source. Sellers and listing agents quote square footage from past appraisals, tax records, sales, and floor plan measurers, all of which can be very different.

For example, it’s no secret that tax records can be wildly inaccurate and outdated.

Equally important is the fact that Boston condos for sale inventory varies. For example, there are Boston condos units that have been completed renovated and not typically factored in to the overall square footage count.

Past appraisals can provide accurate square footage counts, but I’ve seen cases where there are two or three appraisals on hand that have all had different numbers. And as you might expect, sellers and agents typically reference the number in their best interest. As one agent recently commented to me, “The square footage sometimes grows over time.” She mentioned one property in particular that had changed hands three times over a ten-year period, and each time, the square footage increased on the MLS.

I’ve heard anecdotes in the past from my colleagues about buyers who got into contract on properties and ended up making a fuss when their appraisals resulted in notably less square footage than what the disclosures suggested.

So if you’re comparing values by price per square foot, do so with a grain of salt. Combining this data alongside average sale prices is a better route to go.

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Why pricing a Beacon Hill condo based on price per sq ft may not be wise

So many of the “how to price a condominium” articles come straight from California. Probably because California has more real estate agents per capita than any other state. Many of the tips apply to most markets but there are a lot of differences too especially in older neighborhoods like Back Bay or Beacon Hill.

Boston real estate is local and that does complicate things a bit. The process of selling a house differs by state and somewhat by the city as far as what kind of inspections are required and sometimes even where the for sale sign can be placed.

Pricing a Beacon Hill condo for sale experience. Rarely do you see a Beacon Hill condo for sale with the same floor plan and fixtures on the same floor just down the street that recently sold that we can use as exact sales data to estimate the value of your Beacon Hill condo. We have to look at sales prices in the area and make adjustments. To be honest some of it is at least partly a hunch based on experience.

Why pricing a Beacon Hill condo based on price per sq ft may not be wise

Basing your offer Beacon Hill condo for sale price largely on square footage is not something I recommend doing. Though price-per-square-foot is one of the most frequently referenced data points when it comes to Beacon Hill condos for sale, it’s a notoriously unreliable metric.

Beacon Hill condos for sale differ

Beacon Hill real estate by no means is cookie cutter. There’s no standardized square footage source. Sellers and listing agents quote square footage from past appraisals, tax records, and floor plan measure’s and past sales all of which can be very different.

For example, it’s no secret that tax records can be wildly inaccurate and outdated.

Equally important is the fact that Beacon Hill housing inventory varies. For example, there is Beacon Hill for sale that is 5-floor walk-ups, others with an elevator. We also have private roof decks and others with common roof decks or none at all.

Beacon Hill condo for sale appraisals

Past appraisals can provide accurate square footage counts, but I’ve seen cases where there are two or three appraisals on hand that has all had different numbers. And as you might expect, sellers and agents typically reference the highest number. As one agent recently commented to me, “The square footage sometimes grows over time.” She mentioned one Beacon Hill property, in particular, that had changed hands three times over a ten-year period, and each time, the square footage increased in the MLS.

I’ve heard anecdotes recently from my colleagues about buyers who got into contract on a Beacon Hill condo for sale and ended up making a fuss when their appraisals resulted in significantly less square footage than what the disclosures suggested. Buyers need to prepare themselves for this possibility, especially when they’re writing offers with no appraisal contingencies.