What’s a Parking Space Worth?
Okay, so we all know that an open-air parking space in downtown Boston might go for as much as $250,000. At least, that’s what some flush soul paid for a few square feet of brick pavement in the Back Bay in 2006.
But how much should a parking space cost in an outlying neighborhood — like Brighton?
A reader posted this question in the Redfin Forum recently, and naturally, I had to add my two cents. According to the author of the post, sellers in Brighton are asking $35,000 more than other condos because of a parking space. Can a parking space in Brighton possibly be worth that much?
My answer: no.
Though some will disagree, my feeling is that Brighton is NOT the Back Bay, or even Brookline, which has no overnight on-street parking. With a residential sticker and a little patience, anyone can find a parking space, even if it takes a while. And of course, in some parts of Brighton you wouldn’t even have to circle the block before swooping into a prime spot.
Obviously, the value of the parking spot depends on the density of neighborhood, but because a parking space doesn’t provide shelter, electricity or washer and dryer hook-ups, it should not cost $35,000. The upper reaches for me would be $15-$20,000 above a comparable property without parking in a sardine-can neighborhood where parking is clearly at a premium. But of course, that’s my own personal financial limit.
I noticed that when sellers ask significantly more for a condo because of parking, the units languish until the prices drops to slightly more than a comparable unit without parking. For example, a condo at 15 Braemore Road near Cleveland Circle sat on the market for about a year. If I recall correctly, the seller priced it thousands more than one might expect of a 1 bedroom unit of 688 square feet. The price dropped first to $255K, then $249K, where it remains.
Did the sellers put too high a value on that parking space?
Here’s another example at 84 Strathmore Road. It’s an 877 square f00t, two-bedroom, one-bath unit with parking. Last fall the price was $355K, then it dropped to $345K, then, again, it dropped to $325K. The original price was quite high for an 877-square-foot, first floor condo in Brighton, but even with the reductions, it’s still sitting there, waiting for someone to come along.
If parking is worth $35,000 a spot, isn’t this condo on Lake Shore Road terribly undervalued at $359K? It’s 1050 square feet with 3 bedrooms, 2 bathrooms, and TWO parking spaces.
Parking is like ketchup on a burger: it’s nice to have it, but I wouldn’t pay much extra for it.
Buyers, how much would YOU be willing to fork over for your own private piece of asphalt? Realtors, how much are your clients willing to pay for a parking space in Brighton? I’m curious to hear your thoughts.
More of Pamela Reynolds on Brookline and Brighton
From DC To Boston: What I Love About the Hub
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