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What should the difference in price be between two units if you go down by one floor? For example, if apartment 7E sold for $775,000 recently, how much should 6E sell for, assuming that both apartments have the exact same floor plan and renovations.
I know this may be harder than just posting the question, but if you use the search function to the right of this screen and enter "price difference per floor" you will get many many threads extensively exploring the issue.
Kylewest - easy, just don;t respond. Why make it unpleasant for someone posting for the first time.
Depends where: 10,000 if under a million.
In my condo building, the price difference was around $7,000 to $8,000 as you move up each floor for the same unit (all units new) in terms of the listed price. However, there were all sorts of prices negotiated with some buyers getting credits for transfer taxes, lower accepted purchase prices (especially for cash buyers), so that the actual prices the units sold for were not necessarily that much difference between floors that were close to each other.
Keep in mind that there was a bigger jump in price between the units on the floor which had views that cleared the building next door and the units on the floor right below that had views of the rental building next door. Might have been closer to $10-20,000 difference or more between these two floors (not totally certain of this since I am trying to remember based on the offering plan which I glanced at quickly for prices of each floor of similar units).
Also, depending on timing, some higher floors of the same unit were actually cheaper since the market changed in late winter/ early spring with higher prices for the condo units in more recent months. So that lower floor owners might have paid the same or more for the same unit.
I mean, "some higher floors of the same LINE were actually cheaper"
Examine all same line sales in the building to see what the differential is. Apply this differential to your line for an approximation as one of the many factors in determining price.
between $10k-$25k depending on any major diff in view, which there likely isn't but you know best. if no diff, be safe and use $12k-$15k diff. if higher floor does have better view and clears an opposing bldg's roof, than add $25k or so.
u also need to do time adjustment
Since no 2 apartments are exactly alike, even the same line in the same building, therefore it's hard to come up with a number. One floor difference generally means virtually nothing unless the higher floor offers a signicicantly better view, which can be the case but not very often. If the view is essentially the same in both apartments, the difference in price is minimal if anything at all.
So UD, $10K just for more time on the elevator, but if you clear another building and have a view, that's only worth $25K?
looking at 225 rector, the developer had the prices at $15k increments. the higher floors (20th floor and above) were priced at $20-25k because of better views.
since its only 1 floor we are talking about, how much premium can we really give to the higher unit? $50k? $75k? no way the market would produce that unless we are dealing with units that have 12'+ ceiling heights where 1 floor higher really does make a big difference in the views.
I dont think thats the case here. Even if floor 6E sees the top floor of a bldg and doesnt clear, 7E likely has a nice view of the roof mechanicals. I wouldnt call that a big difference where you get more than say $25k of a premium.
Property on prime streets/avenues, such as on Madison Ave/Fifth Ave, that is when you see a view apt get $35K-$50k per floor in premium. Being an inperfect science and that I havent seen the unit, I dont think you can go wrong at $15K for the premium for higher unit if all else is the same.
agreed with RealEstateNY and discussed on UD a while back
If you were talking about Unit 30E vs Unit 29E, both with unobstructed open city views, there is virtually no difference and 30E would not get much of a premium for being 1 floor higher..that was also discussed in the link above
I couldn't imagine paying a penny for a higher floor but I would pay for a better view.
thats basically what we r talking about here. better nat sunlight/views
falcogold1, agree! Take a look at the specific building because each building is differently located, different concessions by Seller/ Sponsor, different timing for purchase, etc.
urbandigs, very nicely written and clear article. Comprehensive and comprehensible. :)
I don't understand why anyone would pay more for a higher floor if there is no difference in light or views. In the UD example of 25 vs 22 floor, why would anyone pay more to be on 25? If anything, it should cost less.
Is this multiplier based on the number of windowed rooms?
@Bob - I agree; the difference is negligible once you get to a high enough floor (though I might pay a premium to be on the 100th floor rather than the 99th ro lower, just for the prestige).
Perhaps it's not a flat multiplier per floor, but a varying number inversely proportional to the floor you're on. 1st to 2nd floor, big bump in price. 50th to 51st floor, near-zero bump. I'd be interested to see if the bump goes negative as the gain in view quality becomes so insignificant that even the hassle of one more floor on an elevator comes to outweigh it.
This is not a simple question to answer. increase are dependent on both the number of units and whether views stop being blocked or improve at certain break-points. If the first eight floors have a view blocked by ventilation units a lower building or a highway you'll see a big increase in prices once those obstacles are removed.
>This is not a simple question to answer.
What do you mean? Urbandigs has a simple formula. Just use that to answer the simple question.
Unless of course the formula doesn't work, in wihch case, use a different formula that Urbandigs also provides. But if that second formula also doesn't work (e.g. you are on Madison Avenue, or too high up, or it's a townhouse, or your building doesn't have enough elevators, or you like treetops, or it's an avenue and not a street) then just realize that you are dealing with an exception and no reason to make a big deal, just divide by zero.