Outsdoor Space...CAN YOU FIND IT!
A: The most Under-Rated amenity of a NYC apartment is outdoor space. Set yourself apart from 90% of the rest of the NYC housing market, and be patient to find that perfect apartment with a large terrace!
I am a VERY strong believer that when searching for good value in NYC real estate, there are a few standards and a few tricks that should be the focus of your attention. The standards of course include location, raw space, and good light/view. The not so obvious things to look out for are building financials, monthly charges and potential assesments, not paying for someone else's renovations, and my favorite, outdoor space.
If I were to put an estimate out there on the number of NYC apartments that have either a balcony or a terrace, it would probably be something like this.
90% NYC Housing Does NOT Have Outdoor Space
8% NYC Housing Has A Balcony (less than 100 Sq. Ft.)
2% NYC Housing Has A Private Terrace (100 Sq. Ft. +)
Looking for outdoor space is hard enough when you have the supply issues that are currently straining the market, but if you are devoted to this luxury amenity, patience is the key. WAIT WAIT WAIT until you find a distressed homeowner who needs to sell, and happens to have a nice terrace.
The thing about private outdoor space, rather than a building roofdeck (which is hardly ever used yet paid for by you in your maintenance charges), is that it adds so much to the quality of living in NYC. And since there is so little of it to go around, it will always demand a premium over housing that doesnt have it.
HOW DO YOU VALUE OUTDOOR SPACE?
Its a tough amenity to value, especially if you are a seller trying to figure out the purchase price that you will eventually ask. A good starting point would be about $400/Square Foot.
Look at the following analysis of a 800 sq. ft. 1BR in a DRMN/ELEV condo in the Upper East Side, as an example:
Apt. 15F WITHOUT Outdoor Space
Sells For $600,000
Apt. 15F WITH 5 x 10 Balcony
Sells For $620,000 (50 x 400 = $20,000)
Apt. 15F WITH 10 x 30 Terrace
Sells For $720,000 (300 x 400 = $120,000)
You can see how the formula works out. While there are minor characteristics about the outdoor space and building that should be taken into account as well (such as view of outdoor space, light, condition, etc), its a fair way to calculate how much you would expect to pay for this luxury!
When you go to sell your apartment, you'll have something that sets your listing apartment from about 90% of the overall inventory, and something that always helps to find a interested buyer fast!
