Home Buying in 11217>Question Details

Marc, Home Buyer in Brooklyn, NY

How important is SQ FT in determining value of a property? Can Sq Ft be offset by building quality and amenities?

Asked by Marc, Brooklyn, NY Sun Jan 23, 2011

I found a really spectacular looking brand new condo in Brooklyn - Prospect Park South at the edge of Lefferts Gardens for $300,000. It is a really good looking building with gym, security camera, parking and state of the art design. It is a really attractive layout, has two terraces in the apartment, beautiful fixtures, modern design, granite countertops, great looking floors, etc.. The unit gets a lot of light and it's about five blocks to convenient trains. The glitch is this. If I decide to move in six or seven years, will I be able to resell it and get my investment back. The agent said that resell value is relative and that sq ft can be offset with amenities like gyms, nice building construction, parking, sun exposure and other amenities. It is only 656 sq ft but doens't fell that small. So my question is how important is Sq Ft and can it be offset by the quality of the building and amenities. I haven't too many rentals in the area for the price but maybe it is in a higher catego

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Have you consulted the Real Estate Ouija Board, a group of agents dedicated to accurately predicting the future of the Real Estate market. You can contact them by placing your hands firmly on the yellow pages and allowing the book to redirect your hands as the book moves freely around the table. This is a sure fire way to answer your concerns about the future, all other ways just aren't as accurate.
1 vote Thank Flag Link Mon Jan 24, 2011
The price sounds reasonable, but you cannot time the market. After looking at Condos on the market you should have a general idea of the value. As for the future market we can only speculate.
0 votes Thank Flag Link Mon Jan 24, 2011
Actually, I can tell you from your description that this apartment is downright cheap. I'll have a comp coming in about the same (315ish) and the apartment is about 650sq ft and a 300+ft terrace on the penthouse level. The building is boutique, the finishes are relatively high end, and the apartment is facing a low traffic street (Hawthorne St).

With your building, you're probably talking about Caton. The bad is that its on a busy intersection. The add value is probably the amenities. A gym is huge, and that's probably the big add value there. When choosing your new construction apartment though, bear in mind that the higher floors command a higher value, southern (even partially southern) exposure usually is priced higher, better fixtures command better prices and the size of the apartment affects the value.

If your main question is whether you'll get a good resale value of it, I would suggest that its a good bet. But we dont have crystal balls (or Real Estate Quija Boards) so you'll have to go with your research and make a determination.
0 votes Thank Flag Link Mon Jan 24, 2011
Marc
the sq ft. is one of the key factors, If you might wish to sell latter. The rest sounds good.
Web Reference: http://www.desire2own.com
0 votes Thank Flag Link Mon Jan 24, 2011
Sq footage is one factor in determining value, it is not the sole factor, because apples and oranges are different, meaning that a 20x50 house can be built poorly , be in bad condition in a terrible location. Agents, builders and sellers that use the calcualtion "price per sq ft" to market a property are using the term which better describes commercial retail space.
0 votes Thank Flag Link Sun Jan 23, 2011
Dear Marc:

Brooklyn is like an island in and of itself. There are many factors that come into play when determining the value of a property. These factors include location, condition, size, amenities and of course market conditions. You really have to concentrate on the here and now, don't worry about six or seven years down the road. Some people think the world will be coming to an end in 2012, does that mean you should not buy now? The bottom line is that nobody can predict the future so don't sweat that. You simply need to look at how much it will cost you every month to own the property and also factor in how much a tax write off you will receive by owning the property. Most likely it will save you a lot on your income taxes, especially if you are renting right now. If the place meets your needs and budget you should go for it.

Also, remember, you can try to negotiate the price down if you think it is too high (but formulate a strategy just in case they refuse to come down). The things that turn you on about the property will also turn on the person who buys it from you down the road! :)

If you want to discuss this further, feel free to call me, I would love to give you more helpful advice. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Sun Jan 23, 2011
Hi Marc
How many condos have you seen so you have something to compare this to. This sounds like a wonderful
studio that you are already in love with, so if you fit in it and the price is reasonable that you can afford don't be so caught up with the square footage. Truthfully its small but if you love it, then somebody else will love in
six or seven years from now. Buy it and enjoy it
0 votes Thank Flag Link Sun Jan 23, 2011
Unfortunately when it comes to resale, none of us can answer with accuracy, as none of knows where the market will head tomorrow or down the road, what we all know is today--if you like the unit, know you will be happy living there, it suits your finances, wants, needs, lifestyle, etc., don't worry too much about resale....
0 votes Thank Flag Link Sun Jan 23, 2011
Square footage is relative, you are only paying for the square footage you are getting, if it was larger in size, teh price would go up accordingly. The key factor is the room size and bedroom count. If it is teh only 1 br in a complex of all 2 bedrooms, then the value will be alot less. Amenities add to desirability, the more desiarable, the more potential buyers, the higher the value than 1 without those amenities. You need to assess what the value is in todays market and base your offer on that, the makret will go up in a a couple of years, it always dose.
Web Reference: http://www.ScottSellsNH.com
0 votes Thank Flag Link Sun Jan 23, 2011
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