The old adage of, “you get what you pay for” isn’t always true, especially in luxury real estate. If you’re in the market for a new high-end condominium it’s important to understand where the value lies over the long term (besides quality design and craftsmanship), and which features can be red-herrings in condo marketing.
Location, Location, Location…and Zoning
Few things contribute as much value to real estate (and are as impossible to change) as location. Look for neighborhoods with good reputations and which have intrinsic value because of their location. For example, condos in downtown districts or near the ocean tend to hold long-term value well as they're always in demand.
Find out how the neighborhood might change over time. Inquiring about the zoning of nearby properties can help determine whether a condo’s beautiful views may be impeded by a new building. This condo on Ocean Boulevard in Boca Raton for example, is found directly on the beach; you can't get any closer to the water!
Natural Light and Unobstructed Views
Kitchens can be remodeled and decor can be improved, but you can’t add windows in a condo. Good, natural lighting is known to improve peoples’ moods and makes any property much easier to sell. Natural light and unobstructed views should be a requirement for any buyer considering a luxury condo. Look for condos with open layouts that allow natural light to penetrate throughout the rooms, and where views can be seen from many angles. This exquisite Aragon condo in Boca Raton makes great use of its expansive views with floor to ceiling windows and an open layout.
The Building and Its Reputation
Buying a condo requires a considerable amount of trust in the other owners in the board and the overall management of the building. The best-maintained buildings tend to be occupied by long-term owners who have a vested interest in maintaining the value of common areas and the exterior. It doesn’t matter how beautiful an individual condo unit is, if the property or building isn’t maintained properly it can undermine the resale value. Ask to see board meeting notes and get a feeling for the general attitude of other condo owners. Look online to see if the building has a good (or bad!) reputation in the neighborhood.
Amenities You Don't Need
This is where marketers, especially with new developments, can distract buyers from the things that have hold long-term value for a condominium to try to position a property as "luxury". Question how important (or obsolete) a building’s “pet spas”, audio-video systems, or entertainment rooms will be in five or ten years. These types of luxury amenities can inflate the prices of new condos and tend to lose their value quickly. Look for long term value added features.
Scot Karp, Director
Ultraluxury Condominium Division
PREMIER ESTATE PROPERTIES
Boca Raton, Florida
"RANKED IN THE TOP 250 AGENTS NATIONWIDE BY THE WALL STREET JOURNAL"