New Calgary Condo Guide to Price per Square Foot
If you’re thinking about buying a new condo in Calgary, chances are one of the most influential factors in deciding what, when and where you buy is the selling price. However, there is another financial metric you should consider – the price per square foot.
What’s the fuss over price per square foot?
It can be very useful when comparing similar condo units in the same areas of the city. If you don’t understand it well and take into account any differences between the standards of measurement (touched on below), it may affect the resale value of your condo in the future.
Here’s what you need to know about the price per square foot when considering a new condo purchase.
What is the price per square foot?
Let’s start out by defining what this term actually means. The price per square foot is when you take the total square footage of a new condo unit and divide it by the price.
For example, let’s say we have a $450,000 unit that’s 1000 square feet, which gives $450.00 per square foot after doing the math.
Keep in mind that you should always consider the true total price to use for this calculation which means adding up any additional costs on top of the total price, such as:
After adding up these expenses, you may be at $500,000 total price, for example, therefore the price per square foot would be $500.00 instead of $450.00.
Consider unique features in comparisons
When considering the price per square foot, it’s also important to isolate unique features of one unit that another unit doesn’t have. Identifying the value added or taken away by such features will help to make sure your price per square foot comparison is even between two different properties.
For example, if you are comparing a new condo whose price per square foot includes two parking stalls to a building that includes only one parking stall, you’ll need to make an adjustment in your calculation and be aware of the difference.
How is the square footage determined?
You’ll want to be aware of how the condominium has arrived at the square footage. For example, parking stall, wall thickness, outside decks, patios, basements etc. are not always indicative of the condo living space that should be used for the price per square foot comparison.
Keep in mind that some apartment-style condominiums use the registered size taken from the condo plan, while others use a “developers size.” Condo documents are a good place to start looking for such information.
It is important to note the size includes only the living area and interior, or as some would say, “paint to paint” is what really counts. By ensuring that every condominium you’re comparing has used the same standard of measurement and you understand how they arrived there ensures that you are comparing apples to apples and your price per square foot comparison is accurate.
You need to get an educated and fully informed overview of all the details when buying a new condo, comparing one option to another for your personal comfort and knowledge. Even if you’re only considering one option, making sure you absolutely understand every intricacy and variable of that choice is critical.
- Also see our New Calgary Condo Guide – Condo Documents
What are the standards for measurement?
Chances are that at some point in the future you’ll want to sell your condo. When you do, you’ll want to understand what the standards of measurement are on the resale market and how they compare to what the developer has measured when you first buy your new condo.
The last thing you want is to buy a new condo from a developer that you originally thought was one size with a certain price per square foot, but then actually end up with a smaller price per square foot on the resale market.
For example, lets say you have a 1000 square foot condo and its $450.00 per square foot and you find out you can’t use the same standards of measurement on the resale market. Now the condo is only 950 square feet, meaning you didn’t pay $450.00 per square foot, but you paid actually closer to $475.00 per square foot.
If similar condo units in your area are selling at $450.00 per square foot, then you’re at a disadvantage and may have to reduce your listing price because the overall square footage is smaller. Don’t let this happen to you!
- See more New Condo Buyer F.A.Q.’s w/ Answers
Ask a professional if you are unsure…
If you’re unsure of how to evaluate the price per square foot of a new condo in Calgary, it’s always best to seek advice from a professional real estate agent with lots of experience in helping people buy from developers.
With a new condo expert by your side, you won’t have to second guess or worry about any of these extra details, about not having the experience and market knowledge or about the past, present and future building cycles and why they matter to you.
As a new condo specialist in Calgary, I would love to help you make an educated informed and smart decision when you go to buy your new Calgary condo!
Questions about New Condos in Calgary?
As a highly-experienced REMAX real estate agent and REALTOR® in Calgary, I promise to guide you every step of the way through your new condo transaction while making sure you have all the information needed to make the best decisions.
Call me anytime at 403-370-4180 or message me below for a quick response. I am looking forward to helping you accomplish your real estate plans!