Ask Candy: What Are Arts District and Uptown Condos Really Selling For in Dallas?
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A Reader writes:
I am very interested in buying a condo near downtown Dallas in an exclusive, small building. The price is over $600 per square foot. I am doing this without a Realtor for personal reasons.
My question is this: I know that condo sales at the Ritz, Museum Tower and One Arts are also in that same price per square foot range, but I wonder if those are fair comparables? They are very different buildings. How would I go about finding comparables in an area saturated with big high rises? Thanks!
Dear Reader: Interesting question. Perhaps our vast real estate brain bank can help you out? I will caution you that while I totally understand not using a Realtor for this transaction, research shows that buyers tend to overpay when they buy without an agent. I also think comparing a smaller building to these large, amenity-loaded high rises may not be appropriate.
Go ahead, go nuts in the comments department!
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Yeah, those are not good comps for a boutique condo that does not have that level of amenities.
Dear Reader, you are misinformed. Sales in the past 6 months in these high rises have ranged from under $500 a square foot to over $700 a square foot. These 3 buildings are not the same price per square foot. I’m not sure how you “know that condo sales at the Ritz, Museum Tower and One Arts are also in that same price per square foot range”. If you want real comparable prices, use a Realtor or hire an appraiser. The reason we keep the actual sales prices available to paying members of the Multiple Listing Service is because, as agents, we pay for this service. Our Realtor dues and fees support everything from market statistics to keeping your mortgage tax deductions.
Good luck in your search and please consider hiring a competent Realtor who knows this market.
There can also be a large discrepancy within the same building depending on floor and condo size. And in the case of the Ritz, even which tower the unit is located in.
Dear Reader, when finding comparable properties you should start at the source! Begin with the building you are most interested in. Find all the units that have sold in the building in the past 6 mo. or push out to a year if you must. Each building is unique and offers many different amenities. A good REALTOR will NOT even look at price per sq.ft….You must look at it from an appraisers point of view. As I’m sure you are aware; Not all square footage is created equally. You must take the previous sales and adjust for crucial elements such as square feet, bedrooms, bathroom, parking spots, floor level and view. This in turn will make your property an “apple for apple” comparable. Find a local a appraiser and ask him what his one line adjustments would be for the area you are looking at. A good REALTOR will have those numbers and should make their adjustments accordingly. I wish you the best in your search and hopefully this is some useful information to get you on the right path to condo ownership!
As others have said, hiring a competent Buyers agent to work on your behalf would help sift through all the details and the nuances of the properties that are really comparables. It’s so important in this tight Buyers market to have someone working on your behalf when buying a property. The Sellers have an agent-this buyer should too!
A professional Realtor will know the answer to these important questions.
I don’t know what line of work this Reader is in – but I doubt very seriously if
he gives away his service or product for free.
My advice to your Reader is simple – retain a Realtor who has been trained as an
Accredited Buyer’s Representative and they can answer this question for you.
I’m assuming that you think you’ll pocket the 3% buyer’s agent commission by going it alone. Think again. Because of the way listing agreements are written, that 3% will most likely end up in the listing agent’s pocket. Unless you are buying from a FSBO, where the commission can make a big difference, there is really no benefit to you being unrepresented in a transaction.
I am not a realtor. You are crazy to represent yourself in this very serious transaction! A good realtor will protect you from all the things you have no clue about. Do not be arrogant and think you know it all. Having owned several condos, you need a professional to look them over and see the things you as a novice will miss. How’s the roof, how’s the association set up and money kept up, is the lobby shabby, etc. I once had an agent tell me “no way would I let you buy this property” when I was in love with the location. Hindsoght shows she is was so right!
I have been involved in over 100 transaction sides at The Residences at the Ritz-Carlton and have extensive experience in the condo marketplace. There are multiple variables in pricing units in a condominium building or project: Location, square footage, floor height, views, quality of finish out, amenities, competent management, percentage of owner occupied units, available financing, health of the HOA, and an active/involved HOA Board, etc.
To establish values in a particular building or project, I would look to current active listings and relevant sales within that building/project as the best valuation method. A Luxury Condominium Specialist/Realtor will know and understand all of those variables and nuances that most would not be able to ascertain on their own.
And I would remind this buyer that this home is a lifestyle decision, and many times there is a unit or building that “speaks to them”, and that should weigh into the decision as well.