Dollar Per Square Ft or Dollar Per Share
Started by JacksonHole
about 14 years ago
Posts: 113
Member since: Apr 2011
Discussion about
When looking at comps, can you use Dollar Per Share as opposed to Dollar Per Square foot? Pros and Cons for using each?
Per Square foot make more sense to me
$-per-share works only within the same co-op, and even then has limitations. For example, the relative values of different-sized apartments might've been different when the shares were allocated. In some co-ops the one-bedrooms might be overweighted, and in others the two-bedrooms, compared to how the shares might be divvied up today.
It's a good metric for you, since you've got the only studio in your co-op. On the other hand, your apartment's bedroom was cut off and given to the super's apartment a long time ago, and you don't know what the sponsor's criteria were when assigning a share value to the bedroom.
NWT, you are indeed very polite.
Psqft. Shares are arbitrary measurements and you need to compare using standardized metrics.
You also need to take into account things like light, views, elevation. A unit on the 9th floor with open views will command a higher premium than the exact same unit on the 4th floor with a view of a brick wall.