How Are Phoenix Condos and Townhomes Valued?

If you’re buying, selling, or simply trying to understand what your Phoenix condo or townhome is worth, you may be wondering whether you need a Phoenix condo appraisal and how it differs from valuing a single-family home.

The good news is that the basic idea is the same: what are buyers actually paying for similar properties in the current market? But condos and townhomes have some additional factors that can make the valuation more complicated.

Read on as we answer some of the most common questions Phoenix condo and townhome buyers have about property values and the factors that influence them. 

Are Phoenix Condos Valued Differently Than Single-Family Homes?

Yes, although the basic principle is the same.

A Phoenix condo appraisal looks at the property itself and how it compares with recent sales of similar units. The appraiser considers the unit’s size, condition, location, features, views, parking, amenities, and other characteristics.

But with a condo, the building and community matter too. The HOA, common areas, amenities, building condition, and location within the community can all affect how buyers view the property.

What Determines the Value of a Phoenix Condo?

There isn’t one number that determines a condo’s value.

An appraiser may consider:

• Recent sales of comparable condos
• Square footage and floor plan
• Number of bedrooms and bathrooms
• Condition and quality of finishes
• Floor level
• Views
• Balcony or patio
• Parking and garage spaces
• Community amenities
• HOA fees
• Location
• Building and community condition
• Current market conditions

The important part is how those characteristics compare with the properties that have actually sold. Learn more about how Akrivis determines property value.

A two-bedroom condo with a mountain view, upgraded finishes and two parking spaces may have a very different value from another two-bedroom unit in the same general area.

Does the HOA Affect Phoenix Condo Value?

It can.

Homeowners association fees pay for things such as common-area maintenance, landscaping, pools, security, insurance, building maintenance, and other shared expenses, depending on the community.

Buyers generally consider those costs when deciding what they’re willing to pay for a condo.

The HOA itself can also matter. Buyers may look at the condition of the community, amenities, rules, reserves, assessments, and overall maintenance when deciding whether a particular condo is right for them.

Do HOA Fees Affect What a Buyer Will Pay?

They can be one factor.

A condo with significantly higher monthly HOA fees may be less attractive to some buyers than a similar property with lower fees. On the other hand, higher fees may cover more amenities or services.

For valuation purposes, the question isn’t simply whether an HOA fee is high or low. It’s how the fee compares with similar properties and what the buyer is getting in return.

How Do Amenities Affect Phoenix Condo Value?

Amenities can be a big part of the appeal of a condo community.

Pools, fitness centers, clubhouses, secured entrances, concierge services, covered parking, rooftop spaces and other amenities can make a property more attractive to buyers.

Phoenix also has plenty of communities where the amenities are part of the lifestyle—particularly in areas where buyers are looking for a lock-and-leave or resort-style property.

But an amenity doesn’t automatically add a specific dollar amount to a property’s value. The market determines how much buyers are willing to pay for it.

Phoenix has several distinct areas where you’ll find different types of condominium properties. Visit Phoenix’s neighborhood guide is a helpful resource for getting familiar with the different areas and what each offers.

Downtown Phoenix and Roosevelt Row have a concentration of urban high-rise and mid-rise properties. Learn more about Roosevelt Row.

The Biltmore area has a different type of condo market, including luxury-oriented properties surrounded by resorts, restaurants, shopping, golf and mountain views. Visit Phoenix’s Biltmore guide provides a good overview of the area.

Desert Ridge is another Phoenix area with a resort-oriented feel, along with shopping, dining, entertainment and outdoor recreation. Explore Desert Ridge through Visit Phoenix.

And if you’re considering the broader Phoenix metro, Old Town Scottsdale is another important market to look at, particularly for buyers interested in dining, shopping, entertainment and nightlife. Explore Old Town Scottsdale.

These areas aren’t interchangeable. A downtown high-rise, a Biltmore luxury condo and a gated Desert Ridge community can appeal to very different buyers, which is why the comparable sales used in a Phoenix condo appraisal need to be carefully selected.

Are There Well-Known Condo Communities in Phoenix?

There are many established condo communities throughout the Phoenix area, ranging from large gated communities to luxury high-rises.

For example, Portland on the Park is a downtown Phoenix high-rise near Roosevelt Row, while Summit at Copper Square is another downtown condominium community near Chase Field and the city’s sports and entertainment venues.

In the Biltmore/Camelback area, communities such as The Residences at 2211 Camelback and Esplanade Place represent a more luxury-oriented high-rise market.

In North Phoenix, Bella Monte at Desert Ridge and The Luxe at Desert Ridge are examples of gated, amenity-oriented condominium communities.

The point isn’t that one community is worth more than another. It’s that Phoenix condo values can vary significantly depending on the type of community, location, building, unit and amenities.

Do Views and Floor Level Matter?

They can matter quite a bit.

A condo with a clear Camelback Mountain view, downtown skyline view, golf-course view or other desirable outlook may appeal differently to buyers than a unit facing a parking lot or another building.

Floor level can matter too, particularly in high-rise buildings.

But views aren’t automatically worth a certain amount. The best way to understand their impact is to look at comparable sales and determine whether buyers in that market are actually paying a premium for similar views.

Does Parking Affect Phoenix Condo Value?

Yes.

Parking can be particularly important in downtown and high-rise condo markets.

A deeded garage space, multiple parking spaces, covered parking, or easy guest parking can make one unit more appealing than another.

If comparable units differ significantly in parking, the appraiser needs to account for that difference when analyzing the sales.

How Are Phoenix Townhomes Valued?

Townhomes can fall somewhere between the condo and single-family-home markets.

Some townhomes are legally structured as condominiums, while others may have different ownership structures. The physical characteristics of the property, ownership structure, HOA responsibilities, and comparable sales all matter.

An appraiser looks at how the property actually competes in the market rather than assuming every townhome should be compared with either condos or detached homes.

Does the Condition of My Condo Matter?

Absolutely.

A renovated condo and an original-condition condo in the same building may have very different values.

Kitchen and bathroom updates, flooring, appliances, windows, fixtures, paint, finishes and overall maintenance can all affect buyer appeal.

The important question is not simply whether you’ve remodeled. It’s whether the improvements are consistent with what buyers in that particular Phoenix market are paying for.

What If My Phoenix Condo Is a Vacation or Second Home?

That’s increasingly relevant in the Phoenix market.

Some buyers are looking for a condo they can use themselves while also viewing it as a long-term investment or occasional vacation rental.

In that situation, location and amenities may be especially important. A buyer looking for a Phoenix-area second home may have very different priorities from someone buying a condo as a primary residence.

If you’re considering a condo as a second home or investment, it can be helpful to separate two questions:

1. What does the property potentially earn or provide as an investment?
2. What is the property actually worth in the current real estate market?

Those aren’t necessarily the same question.

When Should I Get a Phoenix Condo or Townhome Appraisal?

An appraisal may be useful when you’re:

• Buying a Phoenix condo or townhome
• Selling a condo or townhome
• Considering refinancing
• Evaluating an investment or second home
• Trying to understand the property’s current market value
• Planning a future sale
• Dividing assets
• Handling an estate

The right type of valuation depends on why you need the value and who will be relying on it.

The Bottom Line

A Phoenix condo appraisal isn’t simply about comparing one condo to another.

The appraiser needs to understand the specific unit, the building or community, the HOA, amenities, location, condition, views, parking and other characteristics that influence how buyers see the property.

That’s particularly important in Phoenix because the condo market includes everything from downtown high-rises to luxury Biltmore properties and gated communities in areas such as Desert Ridge.

If you’re not sure what your Phoenix condo or townhome is worth or what type of valuation you need, Akrivis Real Estate Valuations is happy to answer your questions and help point you in the right direction.

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