Arriving at Sq. Ft. cost

[KA1]

There are lots of posts in various threads about an apartment being sold by the developer at $ xxx per sq. ft or an exiting apartment was sold for $ xx and the price comes to $ xx per sq. ft.

If a 600 sq.ft. 1+den apartment without parking on 26th floor is sold for, say, $ 400,000, then, how does someone estimate sq ft cost of 800 sq. ft 2 bedroom apartment with parking on, say, 10th floor? Do we take into account the sq ft cost of a new apartment being sold nearby a developer?

would appreciate enlightened thoughts.

 

[condostar]

This varies by location and is not an exact science. They are generally rough estimates and guidelines. Finishes, exposure, layout , but assuming downtown Toronto.

Parking: $30-35k
Floors: $1-2k per floor going up.

In your example unit A sold for $666/sqft.

So Unit B:

(800*$666) + $30,000 - (16 floors * $1,500) = $538,800.

Again only an approximation. Assuming all things being equal.

 

[KA1]

KA!

Thanks

 

[Observer Walt]

This begins to illustrate the very limited usefulness of a "price per sq. ft." calculation. Some people toss around these figures as though they were absolute indications of something or other. The fact is that they are rough indicators at best, and I don't like quoting them.

 

[dpylyp]

Calculation of Price per square foot

This begins to illustrate the very limited usefulness of a "price per sq. ft." calculation. Some people toss around these figures as though they were absolute indications of something or other. The fact is that they are rough indicators at best, and I don't like quoting them.

There are no absolutes as comparing the square footage would only apply in the same building with the same amenities facing the same direction, then it would assume the same upgrades.

I found a Palace Pier listing recently that boasted on $225 per square foot price but the 5 star services are far more expensive than a building with no services or amenities.

 

[simuls]

In calculating the psf, adding premiums per floor is really risky. Most people will pay more for a suite on the 18th floor vs. the 2nd, but from 4-12 or 6-13 there will almost never be a premium charged by the seller in resale - everything else (view, direction facing, etc.) being equal. The only guaranteed premium would be for a PH unit.

Also, to make sure you're comparing apples to apples-ish, make sure when comparing resale to new construction, that in the new construction you calculate the total cost. Price of the unit, plus parking (and/or locker) if the unit has it, plus all of the associated closing costs (land transfer taxes, lawyers, adjustments, etc.). Many new construction projects will neglect these when telling you the psf and these costs can easily add $150+ more to a psf bottom line.

 

[BrianPersaud]

This begins to illustrate the very limited usefulness of a "price per sq. ft." calculation. Some people toss around these figures as though they were absolute indications of something or other. The fact is that they are rough indicators at best, and I don't like quoting them.

Pricing a property by square footage is like pricing a car by weight.

 

[TrickyRicky]

I think you should always avoid talking in price per sqft etc. unless you are the one selling and trying to confuse your buyer. It's in the vested interest of these guys to make it hard for you to compare options and understand the true costs associated with your purchase. They are counting on you to not ask questions and to be afraid of not understanding. If you are buying and don't understand and people are feeding you that just say "I don't understand. Could you please quote me the price in actual dollars".