Value of Ground Floor vs. Higher Floor Condo
1) Upper Level Costs – New construction will generally charge 10% more for a higher floor and of course, the penthouse (Top Floor) costs the most. Some developers charge more for 2nd – 4th floors and even more for 6th-8th floors in the same building.
2) Elevation Matters – The general rule is that as you go up in elevation, so does the price for identical units. Ground floor units can be more appealing than garden units but they still are not as sought after by buyers. To entice a buyer you have to price it lower than other 2 Br units. So long as you do your homework and don’t pay the same price for an identical unit on the 2nd floor, you’ll see a resale value in line with the market for such units.
3) Security & Light – Ground floor units almost always have lower resale value-they have less light and are more of security risk.
This value can be measured by reviewing all past sales in the building and surrounding buildings which your buyer’s agent should provide to you. On the other hand, mitigating circumstances would be a larger outdoor space on the ground floor.
Other Factors in Condominium resale aside from what floor they are on..
1) HOA’s – The rumor that condos do not appreciate as fast as single-family homes is false; according to the National Association of Realtors condos have routinely outpaced single-family homes in appreciation. Unlike houses, however, a condo’s value is closely linked to the association fee. You need to remember to keep in mind what the HOA covers.
2) Age of the Building – Pre Sale condos are usually a better investment than a very old building that may have many new assessments coming up..Like fixing the plumbing, air conditioning, replacing windows, siding, etc in an old building.
3) Of Course, Location Location Location..Invest in a realtor who knows the area and is willing to educate you with all the pros and cons of your investment.
Your Home is probably the biggest investment you will make..choose wisely.