Curb Appeal in Uptown>Question Details

Russ, Home Buyer in 60613

Parking: How much of a difference does INDOOR vs. OUTDOOR make?

Asked by Russ, 60613 Mon Nov 26, 2007

I recently bought a condo in Uptown(Sheridan Park-60613) and I have a separate(Deeded), secure, outdoor parking space. This is all good and deeded parking was important to me.

I just found out someone is selling their unit and they have an indoor parking space. I would like an indoor space and would consider approaching them to do a swap of my space for theirs some cashola. Of course, this would be a legal realestate transaction due to the deeded ownership.

BOTTOM LINE QUESTIONS:
- How much cash should I offer along with my space?
- How can I estimate the closing cost situation to do this transfer?
- How much value does it add when selling to have indoor vs. outdoor parking?

Thanks in advance

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Answers

6
BEST ANSWER
Hi Russ:

What to offer will depend on the difference in current price between indoor and outdoor spaces in your building.

As a fellow Chicagoan, I would MUCH rather have an indoor space (because nobody likes scraping ice off their windshield in subzero weather); however, the actual value of the unit will not be greatly affected. Instead, the **perceived** value will be boosted, and this is the key with resale. As suggested below, you should fish with the seller a bit to see if this is something he would even consider, since perceived value is what sells real estate, and that of his unit would be reduced.

Then again, the opposite could happen with your unit. Be sure that your and the seller's units are of comparable value so that swapping won't negatively affect the "purchase-ability" of your unit. Make sure that when packaged together, it still appears to be a good buyi. Also keep in mind that because it is a deeded spot, there are taxes adn assessments on the spot. Are they included in your assessments? If so, they may go up.

As for transaction costs, this is a real estate transaction like any other. A contract will have to be written up with the details of the purchase. You can choose to hire an attorney who may just charge you a reduced flat fee since the transaction is less complicated than with regular property, and he can write up the agreement for you. I used to be a real estate paralegal and was surprised to see how LONG the legal descriptions can be for a lil' ol' parking space.
1 vote Thank Flag Link Mon Nov 26, 2007
Patti Pereyra, Real Estate Pro in Chicago, IL
MVP'08
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One more note: I would start communications with them asking if they would be interested in selling the indoor parking space. Let them give you an amount... they could say a lower number than you would think.
1 vote Thank Flag Link Mon Nov 26, 2007
You know best how convenient an indoor space is... I would estimate a $10,000 premium for indoor (and the same for increase in value).. but having parking is the most important for resale.
1 vote Thank Flag Link Mon Nov 26, 2007
Contact the owner of the indoor parking and first ask if they are selling the space and the asking price.
If the space is for sale, contact an agent to do a market analysis of properties with indoor vs outdoor parking and base your offer on this information. Seek legal advise on the closing cost and transfer.
Indoor parking is advantageous in selling property,especially with parking problems in the city.
0 votes Thank Flag Link Mon Dec 31, 2012
Thanks for all the comments so far. As always, you have all been very helpful. I did hear back from the person via vmail and they indicated they are not willing to separate the spot from the unit...I can understand that, but would still like to pursue with others in the building for this. As noted and a VERY good point...I should find out about assessment impact as well(Thanks Patti).
0 votes Thank Flag Link Mon Nov 26, 2007
Indoor parking is very valuable. Had that unit been for sale at the time you purchased it would have probably been the winner had all else been the same, correct?

There is actual value (an appraisals value) and their is emotional value for buyers so I would say that it would probably take more than $10,000 for you to buy the space from the other seller because you would be removing one of his best selling points. It would add value to your unit and make it easier to sell. Make an offer and see where it goes in negotiations. I have seen parking spaces go for $25,000 and more here in Georgia... that does not mean it raised the properties value by that much.

If you are paying cash for the spot than the only cost involved is having a title company or attorney transfer title... should not be much especially if you give repeat business to the company that closed your purchase.

Let us know what happens!
0 votes Thank Flag Link Mon Nov 26, 2007
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