Monday, July 28, 2008
Another Book Recommendation!
This weeks Blog entry is dedicated to a woman by the name of Elli who recently commented on a Book recommendation I did a couple of weeks back (re: a book about Toronto Neighborhoods). Based upon that enthusiastic and encouraging commentary, I thought I would offer another recommendation about a couple of books that really ought to be " Required " reading for anyone contemplating the purchase of a Condominium (NEW and/or resale).
The books in question are entitled " The Fundamentals of Building Construction " (Materials and Methods) and " How Buildings Work. " Both books were written by Edward Allen, who is an American writer and educator in the field(s) of Architecture and Construction. The first book is in it's 5th edition (and was published by John Wiley & Sons) while the latter work was recently revised as of 2005. ie./ How Buildings Work is published by Oxford University Press.
The great thing about both of these books is that they tend to explain and describe all of those pertinent issues no-one ever wants to talk about when contemplating the purchase of a NEW Condominium -- " namely how the structure and/or edifice is being built " and whether or not the way it's being built is actually " the right way. "
I came upon these books (especially the first work) when I was relatively new in the business (some 8 or 9 years ago). As I started to really dedicate myself to selling NEWER condominiums in downtown Toronto, it occured to me that (should someone ask) I couldn't really explain the nature and process implicit in building a condominium, nor could I explain and/or warrant good building practices from poor and/or sub-standard construction. Based principally upon my own failings in this regard, I started to search out different resources that would bring me up to speed, and much to my surprise there was little if anything out there to help me educate myself. Needless to say, I was not only relieved, but quite impressed when I eventually came across Mr. Edwards' works -- as he dealt specifically (and in detail) with all the varying issues connected with this type of building construction.
ie./ The first book covers all of the technical details associated with topics such as Building foundations, tie-backs, piers, and anchoring systems etc... It also goes on to discuss issues such as how floors are built (and added upon) / how mechanical elements such as electricity / water and heating (cooling) etc... are brought into a building. Moreover -- it also gives one a rudimentary appreciation for how buildings are enclosed / how windows and/or fenestration is used to mitigate against weather, and what if any issues are related to all of these varying aspects and/or elements of the building process. In essence, then -- this book gives one a fundamental understanding of what's involved in the building process, and why and how some of these issues matter.
The second work is a little less complex and/or sophisticated in it's over-all descriptions about how buildings actually get built, but it is undeniably a great starting place. Although it deals with similar issues and/or concepts, it tends to go into less detail about some of the specifics of the building process, and hence may well be the easier book to both read and comprehend. It also tends to deal less specifically with larger scale projects and/or construction -- which again makes some of the concepts and ideas easier to digest and/or understand.
As to the relative signifigance of all of this -- without some basic knowledge of the building process per se, a potential Buyer is virtually incapable of asking a lot of the serious (more pertinent) questions which really ought to be asked and/or considered prior to deciding which project and/or development might be best for him or her. I don't think this is accidental, as not talking about all of these critical issues definintely keeps the Builder / Developer in something of a controlling position -- and if nothing else keeps the buying process quite simple (if not simplistic) and easily controllable. ie./ If it's only about " life-style " / " granite counter-tops " / " stainless steel appliances " and all of those other things complicit in the MARKETING process, the sales process is indeed much easier to control, much easier to facilitate and as a result much more straight forward. To put it yet another way, most people are forced into a circumstance where-in they have to base one of their most serious buying / investment decisions, on an almost excrutiatingly limited amount of information (which may or may not be pertinent to the final product being purchased). In a very real sense then, not knowing anything about the real " MEAT " of what's involved in construction means people are making some of their most serious buying decisions based solely upon marketing, floor-plans, a modicum of interior features and finishes and price. Without knowing any of the REAL details as to how a building gets built (and how your particular and/or chosen Developer/Builder might be contructing his project) a lot of people are consequently buying condominiums the way some people buy vehicles -- ie./ based solely upon the brochure, the number of drink(s) holders and/or the nature of the seats? Although this is definitely one way to buy a car, without considering the mechanical and/or critical features of the car, you're just as apt to be buying a lemon as a peach. If you've tasted both -- you know one leaves a whole other taste in your' mouth than the other.
To bring this back to the real situation in Toronto, most people might not realize that one of the biggest and currently most successful properties / developments in Toronto, is also the self-same company and/or business entity that was previously embrolied in the " leaky condo " debacle out in Vancouver. That situation, was principally an issue of how the fenestration and/or window systems were designed and installed out there, as opposed to anything you might have picked up upon within the marketing materials originally dispensed. Moreover, the issue out West hasn't as yet been rectified in any meaningful way -- which does in fact mean the original buyers are indeed the one's stuck with both the head-aches and the bills emanating from that mess. Finally, and this should scare anyone with an imagination, there have already been some similar complaints and/or issues with some of the fenestration systems being installed by this self-same Builder / Developer here in Toronto. I don't know, as I haven't myself suffered the kind of pain and anguish involved in the process of seeing one's investment compromised in this way, but I'm quite sure I wouldn't like it. I'm also quite sure, that if all of that information was readily available and/or out in the open, a lot of people here in Toronto may well have purchased elsewhere.
Hence, for anyone who geuniunely wants to go the extra mile, and wants to get better aquainted with some of the issues and/or questions that go into the " REAL " condominium building process, either of the two works cited by Mr. Allen are highly recommended starting points.
Thanks again Elli -- if this posting helps anyone out there (including yourself) you and Mr. Allen will be doing someone a great service.
The books in question are entitled " The Fundamentals of Building Construction " (Materials and Methods) and " How Buildings Work. " Both books were written by Edward Allen, who is an American writer and educator in the field(s) of Architecture and Construction. The first book is in it's 5th edition (and was published by John Wiley & Sons) while the latter work was recently revised as of 2005. ie./ How Buildings Work is published by Oxford University Press.
The great thing about both of these books is that they tend to explain and describe all of those pertinent issues no-one ever wants to talk about when contemplating the purchase of a NEW Condominium -- " namely how the structure and/or edifice is being built " and whether or not the way it's being built is actually " the right way. "
I came upon these books (especially the first work) when I was relatively new in the business (some 8 or 9 years ago). As I started to really dedicate myself to selling NEWER condominiums in downtown Toronto, it occured to me that (should someone ask) I couldn't really explain the nature and process implicit in building a condominium, nor could I explain and/or warrant good building practices from poor and/or sub-standard construction. Based principally upon my own failings in this regard, I started to search out different resources that would bring me up to speed, and much to my surprise there was little if anything out there to help me educate myself. Needless to say, I was not only relieved, but quite impressed when I eventually came across Mr. Edwards' works -- as he dealt specifically (and in detail) with all the varying issues connected with this type of building construction.
ie./ The first book covers all of the technical details associated with topics such as Building foundations, tie-backs, piers, and anchoring systems etc... It also goes on to discuss issues such as how floors are built (and added upon) / how mechanical elements such as electricity / water and heating (cooling) etc... are brought into a building. Moreover -- it also gives one a rudimentary appreciation for how buildings are enclosed / how windows and/or fenestration is used to mitigate against weather, and what if any issues are related to all of these varying aspects and/or elements of the building process. In essence, then -- this book gives one a fundamental understanding of what's involved in the building process, and why and how some of these issues matter.
The second work is a little less complex and/or sophisticated in it's over-all descriptions about how buildings actually get built, but it is undeniably a great starting place. Although it deals with similar issues and/or concepts, it tends to go into less detail about some of the specifics of the building process, and hence may well be the easier book to both read and comprehend. It also tends to deal less specifically with larger scale projects and/or construction -- which again makes some of the concepts and ideas easier to digest and/or understand.
As to the relative signifigance of all of this -- without some basic knowledge of the building process per se, a potential Buyer is virtually incapable of asking a lot of the serious (more pertinent) questions which really ought to be asked and/or considered prior to deciding which project and/or development might be best for him or her. I don't think this is accidental, as not talking about all of these critical issues definintely keeps the Builder / Developer in something of a controlling position -- and if nothing else keeps the buying process quite simple (if not simplistic) and easily controllable. ie./ If it's only about " life-style " / " granite counter-tops " / " stainless steel appliances " and all of those other things complicit in the MARKETING process, the sales process is indeed much easier to control, much easier to facilitate and as a result much more straight forward. To put it yet another way, most people are forced into a circumstance where-in they have to base one of their most serious buying / investment decisions, on an almost excrutiatingly limited amount of information (which may or may not be pertinent to the final product being purchased). In a very real sense then, not knowing anything about the real " MEAT " of what's involved in construction means people are making some of their most serious buying decisions based solely upon marketing, floor-plans, a modicum of interior features and finishes and price. Without knowing any of the REAL details as to how a building gets built (and how your particular and/or chosen Developer/Builder might be contructing his project) a lot of people are consequently buying condominiums the way some people buy vehicles -- ie./ based solely upon the brochure, the number of drink(s) holders and/or the nature of the seats? Although this is definitely one way to buy a car, without considering the mechanical and/or critical features of the car, you're just as apt to be buying a lemon as a peach. If you've tasted both -- you know one leaves a whole other taste in your' mouth than the other.
To bring this back to the real situation in Toronto, most people might not realize that one of the biggest and currently most successful properties / developments in Toronto, is also the self-same company and/or business entity that was previously embrolied in the " leaky condo " debacle out in Vancouver. That situation, was principally an issue of how the fenestration and/or window systems were designed and installed out there, as opposed to anything you might have picked up upon within the marketing materials originally dispensed. Moreover, the issue out West hasn't as yet been rectified in any meaningful way -- which does in fact mean the original buyers are indeed the one's stuck with both the head-aches and the bills emanating from that mess. Finally, and this should scare anyone with an imagination, there have already been some similar complaints and/or issues with some of the fenestration systems being installed by this self-same Builder / Developer here in Toronto. I don't know, as I haven't myself suffered the kind of pain and anguish involved in the process of seeing one's investment compromised in this way, but I'm quite sure I wouldn't like it. I'm also quite sure, that if all of that information was readily available and/or out in the open, a lot of people here in Toronto may well have purchased elsewhere.
Hence, for anyone who geuniunely wants to go the extra mile, and wants to get better aquainted with some of the issues and/or questions that go into the " REAL " condominium building process, either of the two works cited by Mr. Allen are highly recommended starting points.
Thanks again Elli -- if this posting helps anyone out there (including yourself) you and Mr. Allen will be doing someone a great service.
Monday, July 21, 2008
The Importance of TIMING!
If you ask any investment advisor about the keys to investing well and/or how to really make money, somewhere within the context of his or her response you are more than likely going to hear some mention of the issue of " timing. " Buy LOW and Sell HIGH -- is a mantra almost as ubiquitous (in the investment arena) as the Realtors' mantra of LOCATION, LOCATION, LOCATION.
For the purposes of this up-date, we're not going to concern ourselves with the often tricky and complicated issue of how to decipher the market, and how to time transactions in relation to same -- but we will offer a few simple generalizations as to the normal cycles of the Condominium market (and/or Real Estate market), and how best to try and co-ordinate transactions in accordance with same.
Obviously, from a Buying perspective - you're going to want to time your' purchase(s) to coincide with the slowest and/or least active selling times of the year, in order to level the playing field somewhat between yourself and those who might be looking to sell (be they Developers and/or individual property owners'). The best deals I've made over the past 10 years or so (on behalf of Buyers) have almost always occured during the latter part of July and throughout August (up until labour day and/or the first weekend in September). This is perhaps the one time of the year when people sort of tune-out of the Real Estate world in order to enjoy the remainder of the summer (a time often synonomous with vacations) and/or that last vestige of peace and quiet before work begins again in earnest. Although there are generally less resale listings available during this portion of the year, those that are listed are usually serious about selling, and Developers / Builders' in particular may well be highly motivated (trying to avoid a slow sales month and/or muster whatever they can during this traditional down-time). As a result, most resales tend to be a lot more even handed at this time of year, and most Developers / Builders a lot less likely to raise their price(s) etc.... In either case -- the reality is that you are a lot more likely to negotiate favorable terms for your-self as a Buyer during these months, than you are at any other time within the normal calendar year. (note: Although Christmas is often also considered a propitious time for Buyers' -- over the course of my tenure in Real Estate it hasn't provide the same level and consistancy of opportunity as late summer does. This doesn't mean that things can't and/or won't change -- just that the last 10 years or so of my experience suggest otherwise).
For those of you thinking of selling a property on the other hand, The Spring and Fall markets are most definitely the most opportune time(s) to be engaged in this general activity. As is almost always the case, you'll have more Buyers' looking during these two seasons -- which in-turn should enhance your' capacity to potentially create a " multiple offer circumstance " and/or simply stand your ground (price-wise). Moreover, as the increased number of Buyers will in consequence alter the relative relationship between Buyers and Sellers -- it should (and does) often change what might be a more balanced market into something of a " Sellers' " market.
Although none of these circumstances has to occur as outlined heretofore, as long as our market remains relatively healthy and strong, my expectations would be that these general principles should prevail going forward. Hence, dependent upon your' market expectations and/or fore-casts for real estate in the near term, the next couple of months may well prove an ideal time for you to cast your' line into the Condominium marketplace. Should you indeed be a potential Buyer at this point, odds are quite good you will be happy you did.
For the purposes of this up-date, we're not going to concern ourselves with the often tricky and complicated issue of how to decipher the market, and how to time transactions in relation to same -- but we will offer a few simple generalizations as to the normal cycles of the Condominium market (and/or Real Estate market), and how best to try and co-ordinate transactions in accordance with same.
Obviously, from a Buying perspective - you're going to want to time your' purchase(s) to coincide with the slowest and/or least active selling times of the year, in order to level the playing field somewhat between yourself and those who might be looking to sell (be they Developers and/or individual property owners'). The best deals I've made over the past 10 years or so (on behalf of Buyers) have almost always occured during the latter part of July and throughout August (up until labour day and/or the first weekend in September). This is perhaps the one time of the year when people sort of tune-out of the Real Estate world in order to enjoy the remainder of the summer (a time often synonomous with vacations) and/or that last vestige of peace and quiet before work begins again in earnest. Although there are generally less resale listings available during this portion of the year, those that are listed are usually serious about selling, and Developers / Builders' in particular may well be highly motivated (trying to avoid a slow sales month and/or muster whatever they can during this traditional down-time). As a result, most resales tend to be a lot more even handed at this time of year, and most Developers / Builders a lot less likely to raise their price(s) etc.... In either case -- the reality is that you are a lot more likely to negotiate favorable terms for your-self as a Buyer during these months, than you are at any other time within the normal calendar year. (note: Although Christmas is often also considered a propitious time for Buyers' -- over the course of my tenure in Real Estate it hasn't provide the same level and consistancy of opportunity as late summer does. This doesn't mean that things can't and/or won't change -- just that the last 10 years or so of my experience suggest otherwise).
For those of you thinking of selling a property on the other hand, The Spring and Fall markets are most definitely the most opportune time(s) to be engaged in this general activity. As is almost always the case, you'll have more Buyers' looking during these two seasons -- which in-turn should enhance your' capacity to potentially create a " multiple offer circumstance " and/or simply stand your ground (price-wise). Moreover, as the increased number of Buyers will in consequence alter the relative relationship between Buyers and Sellers -- it should (and does) often change what might be a more balanced market into something of a " Sellers' " market.
Although none of these circumstances has to occur as outlined heretofore, as long as our market remains relatively healthy and strong, my expectations would be that these general principles should prevail going forward. Hence, dependent upon your' market expectations and/or fore-casts for real estate in the near term, the next couple of months may well prove an ideal time for you to cast your' line into the Condominium marketplace. Should you indeed be a potential Buyer at this point, odds are quite good you will be happy you did.
Tuesday, July 15, 2008
A Book Recommendation!
As this will hopefully serve as something of an educational and/or information rich BLOG, I thought I would start offering recommendations from time to time about other resources which might be of service to people looking specifically at the Toronto Condominium marketplace (books / websites / magazines etc...).
That said -- the book I wanted to let you know about this week, is a resource I've been using ever since I originally got into Real Estate (as a Sales Agent). The book in question is a great place to start any potential search -- as it provides something of a summary and/or cross section of all of the varying neighborhoods usually encompassed by and/or contained within Toronto proper. (note: when Toronto almagamated recently to include many of the areas outside of Toronto -- and/or within the 905 area codes, the geographical boundaries of Toronto expanded accordingly. The book in question deals more specifically with those areas contained within the previous and/or more traditional boundaries).
The book is entitled " Your Guide to Toronto Neighborhoods " and was written by
David Dunkelman. David was and is (as far as I know) still a Realtor, so the book really caters to exactly those kinds of concerns usually voiced by people looking to move into our City. The book breaks Toronto down into it's constituent part(s) and does encompass areas as far ranging as East York / Etobicoke / North York and Scarborough. Most area descriptions include a brief history of the area (usually the most interesting components of his general outlines) / an Overview -- and varying comments regarding elements such as styles of homes contained within each area, recreational facilities contained within the neighborhood boundaries, schools and transportation etc....
I know a lot of potential condominium Buyers won't be interested in some of these more secondary and/or peripheral issues, but by and large -- the book provides a great way to start thinking about what neighborhoods might be of interest to ones'self, as well as what attractions and/or features are contained within some of the areas you might want to move into. As we always tell our clients -- not only is location paramount (in terms of the potential value a property might garner over time), it's also a principle component of the buying proposition, since not only are you buying a physical and/or tangible property -- you're also buying into the NEIGHBORHOOD that property is contained within. Needless to say, when you're talking LOCATION (location / location / location etc...) -- you're really talking about NEIGHBORHOOD as well, so anything you can do up-front to enhance your odds of making the right decision (for yourself) is probably worth considering..
My copy of " YOUR GUIDE TO TORONTO NEIGHBORHOODS " was published in 1999 by Maple Tree Publising Inc. and printed by the University of Toronto Press Incorporated. The book is available at the regional head-quarters of The Toronto Real Estate Board at 1400 Don Mills Road (in Toronto), and should also be readily available through Chapters / Indigo. If you'd like to contact Maple Tree Publishing directly - you can contact them at 1370 Don mIlls Road (suite # 300) in Toronto -- M3B 3N7.
That said -- the book I wanted to let you know about this week, is a resource I've been using ever since I originally got into Real Estate (as a Sales Agent). The book in question is a great place to start any potential search -- as it provides something of a summary and/or cross section of all of the varying neighborhoods usually encompassed by and/or contained within Toronto proper. (note: when Toronto almagamated recently to include many of the areas outside of Toronto -- and/or within the 905 area codes, the geographical boundaries of Toronto expanded accordingly. The book in question deals more specifically with those areas contained within the previous and/or more traditional boundaries).
The book is entitled " Your Guide to Toronto Neighborhoods " and was written by
David Dunkelman. David was and is (as far as I know) still a Realtor, so the book really caters to exactly those kinds of concerns usually voiced by people looking to move into our City. The book breaks Toronto down into it's constituent part(s) and does encompass areas as far ranging as East York / Etobicoke / North York and Scarborough. Most area descriptions include a brief history of the area (usually the most interesting components of his general outlines) / an Overview -- and varying comments regarding elements such as styles of homes contained within each area, recreational facilities contained within the neighborhood boundaries, schools and transportation etc....
I know a lot of potential condominium Buyers won't be interested in some of these more secondary and/or peripheral issues, but by and large -- the book provides a great way to start thinking about what neighborhoods might be of interest to ones'self, as well as what attractions and/or features are contained within some of the areas you might want to move into. As we always tell our clients -- not only is location paramount (in terms of the potential value a property might garner over time), it's also a principle component of the buying proposition, since not only are you buying a physical and/or tangible property -- you're also buying into the NEIGHBORHOOD that property is contained within. Needless to say, when you're talking LOCATION (location / location / location etc...) -- you're really talking about NEIGHBORHOOD as well, so anything you can do up-front to enhance your odds of making the right decision (for yourself) is probably worth considering..
My copy of " YOUR GUIDE TO TORONTO NEIGHBORHOODS " was published in 1999 by Maple Tree Publising Inc. and printed by the University of Toronto Press Incorporated. The book is available at the regional head-quarters of The Toronto Real Estate Board at 1400 Don Mills Road (in Toronto), and should also be readily available through Chapters / Indigo. If you'd like to contact Maple Tree Publishing directly - you can contact them at 1370 Don mIlls Road (suite # 300) in Toronto -- M3B 3N7.
Monday, July 7, 2008
Price Per Square Foot -- An Industry Barometer!
One of the ways we in the industry evaluate the relative value and/or pricing of a condominium in Toronto, is to try and figure out " the price per square foot " of the property under consideration.
On a newer property and/or condominium being sold by a Developer this is usually quite easy, as the unit size is almost always indicated -- and the price per sq. foot for the unit is hence just the declared price divided by the units size. ie./ So if a 675 sq. foot unit is selling for $299,900.00 -- its' price per sq. footage price is actually $444.29 (or roughly $445.00). For newer properties such as the one in this example, parking and locker costs are usually added on (after the fact), so an allowance for these factors doesn't normally have to be taken into account.
Of course, the above noted calculation can only be done when and if the Seller declares the properties square footage, which isn't always declared in the case of a resale. When and if it is declared, one ought to subtract the relative value of both the parking and locker, and then divide the remaining stipend (or what's left of the asking price) by the declared square footage. ie./ On an 800 sq. foot unit listed at $399,900.00 -- with a parking spot valued at approximately $25,000.00 and a locker worth roughly $3,500.00 -- the price per sq. foot for said unit would be more like $464.25 and/or roughly $465.00 per sq. foot.
How is this helpful and/or beneficial to a potential Buyer? First off -- given that this is the language and/or general guideline used by Developers to assess the value of what they're selling -- knowing this figure and/or information at the very least puts you on an even playing field with the Seller when it comes to determining and/or considering the relative value of what is being sold and/or purchased? Moreover, the more you know about the relative value and/or price per sq. foot of properties throughout Toronto, the more you can start to get a handle on any premiums being charged for things such as location(s) / finishes / up-grades and the like. Where and if large discrepancies appear, knowing the price per square foot of the properties in question, should also enhance your' capacity to understand where this discrepancy is coming from.
Finally -- as should go without saying, the only figures (in terms of square footage) which ought to be taken into consideration when making such calculations is the interior " living area " -- as this is the only square footage which actually counts in determining the real value of a property (ie./ outdoor and/or terrace space does of course have an impact -- but as it isn't living space per se, it's value is more as an up-grade and/or feature benefit than as actual living space etc...).
Hence -- next time your' out there, try to ascertain how much the property you're considering is actually selling for on a price per square footage basis, and then make comparisons (where-ever possible) based upon these kinds of calculations. Not that this figure is and/or ought to be the be all and end all -- of your' valuations and/or judgements, but outside of most of the extraneous things one can look at, price per square footage figures at least have the benefit of being a somewhat objective place to start. If the numbers suggest anything irregular and/or out of the norm (which they often do) -- the next step is always trying to account for that discrepancy and/or figuring out where it's coming from. Without this kind of initial guideline and/or barometer -- trying to assess the real relative value of any property you're likely to consider is something akin to licking your' fingers and sticking them up in the wind to try and gage what the weather might do next. If you'd rather keep your' fingers dry and rely upon more tangible guidelines and/or instruments -- the price per sq. footage barometer (carried by most Realtors and Developers) may well be the instrument for you.
On a newer property and/or condominium being sold by a Developer this is usually quite easy, as the unit size is almost always indicated -- and the price per sq. foot for the unit is hence just the declared price divided by the units size. ie./ So if a 675 sq. foot unit is selling for $299,900.00 -- its' price per sq. footage price is actually $444.29 (or roughly $445.00). For newer properties such as the one in this example, parking and locker costs are usually added on (after the fact), so an allowance for these factors doesn't normally have to be taken into account.
Of course, the above noted calculation can only be done when and if the Seller declares the properties square footage, which isn't always declared in the case of a resale. When and if it is declared, one ought to subtract the relative value of both the parking and locker, and then divide the remaining stipend (or what's left of the asking price) by the declared square footage. ie./ On an 800 sq. foot unit listed at $399,900.00 -- with a parking spot valued at approximately $25,000.00 and a locker worth roughly $3,500.00 -- the price per sq. foot for said unit would be more like $464.25 and/or roughly $465.00 per sq. foot.
How is this helpful and/or beneficial to a potential Buyer? First off -- given that this is the language and/or general guideline used by Developers to assess the value of what they're selling -- knowing this figure and/or information at the very least puts you on an even playing field with the Seller when it comes to determining and/or considering the relative value of what is being sold and/or purchased? Moreover, the more you know about the relative value and/or price per sq. foot of properties throughout Toronto, the more you can start to get a handle on any premiums being charged for things such as location(s) / finishes / up-grades and the like. Where and if large discrepancies appear, knowing the price per square foot of the properties in question, should also enhance your' capacity to understand where this discrepancy is coming from.
Finally -- as should go without saying, the only figures (in terms of square footage) which ought to be taken into consideration when making such calculations is the interior " living area " -- as this is the only square footage which actually counts in determining the real value of a property (ie./ outdoor and/or terrace space does of course have an impact -- but as it isn't living space per se, it's value is more as an up-grade and/or feature benefit than as actual living space etc...).
Hence -- next time your' out there, try to ascertain how much the property you're considering is actually selling for on a price per square footage basis, and then make comparisons (where-ever possible) based upon these kinds of calculations. Not that this figure is and/or ought to be the be all and end all -- of your' valuations and/or judgements, but outside of most of the extraneous things one can look at, price per square footage figures at least have the benefit of being a somewhat objective place to start. If the numbers suggest anything irregular and/or out of the norm (which they often do) -- the next step is always trying to account for that discrepancy and/or figuring out where it's coming from. Without this kind of initial guideline and/or barometer -- trying to assess the real relative value of any property you're likely to consider is something akin to licking your' fingers and sticking them up in the wind to try and gage what the weather might do next. If you'd rather keep your' fingers dry and rely upon more tangible guidelines and/or instruments -- the price per sq. footage barometer (carried by most Realtors and Developers) may well be the instrument for you.
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