Condo vs House Price per Square Foot in Los Feliz: How to Compare Fairly

Divide each price by its living square footage, then look past that number to the monthly cost. A fair comparison of a Los Feliz condo and a house adds the HOA fee to the condo's monthly payment. It adds a set-aside for repairs and the costs a fee would cover to the house. The home that looks cheaper per foot is not always the one that costs less each month.

At Rooster Homes™ we run this comparison with buyers who are weighing both. This post lays out the method step by step. It uses no Los Feliz prices, because those change and differ from one building and street to the next. We pull current numbers for the homes you are considering.

The square footage is not measured the same way. A listing's square footage can come from county records, an appraisal or the seller. Different sources can give different numbers for the same home.

It counts different things. A condo's square footage generally covers the living space inside the unit. The house's number also covers only living space, but the house comes with a lot, often a garage and the full structure. The condo comes with a share of the building and its common areas. Our post on condo or house: space goes further on this.

It leaves out the monthly costs. Price per square foot is a purchase number. It says nothing about the HOA fee, the insurance, or the roof a house owner will replace someday.

Here is the method, step by step. Your lender gives you the loan figures, and your insurance agent gives you the insurance quotes.

1. Start with price per square foot. Divide each list price by its living square footage. Use it as a first screen, not a verdict.
2. Estimate the loan payment. Ask your lender for principal and interest on each price. Condo loans can carry different terms than house loans, and some loan programs review the building too.
3. Add property tax. Your lender can estimate it for each price. Include any special assessments on the tax bill.
4. Add insurance. A condo owner usually carries a condo policy, often called an HO-6, for the inside of the unit and belongings. The association's master policy covers the building, and part of your fee pays for it. A house owner insures the whole structure.
5. Add the HOA fee to the condo. Then list what the fee covers. Water, trash, building insurance, common area upkeep and reserves are common. Some fees cover more.
6. Add those same costs to the house. If the condo fee covers water and trash, add your own estimate for water and trash to the house. Add a monthly set-aside for the roof, the exterior paint, the plumbing and the yard. This is the house version of the association's reserves.
7. Add any special assessment to the condo. If one has been approved and not yet paid, spread it across the months you plan to own, or treat it as cash at closing if the contract calls for that.
8. Compare the totals. Now the two numbers describe the same things.

The numbers below are made up to show the method. They are not Los Feliz prices, fees or costs.

Say a condo lists at $800,000 with 1,000 square feet. That is $800 per square foot. A house lists at $1,200,000 with 1,600 square feet. That is $750 per square foot. On price per foot, the house looks like the better buy.

Now add the monthly side. The condo carries a $500 fee that covers water, trash, the building's insurance and reserves. The house has no fee. But the house owner pays for water and trash, a full homeowners policy and a set-aside for the roof and exterior. Once those are added, the gap between the two monthly totals can shrink, grow or flip. It depends on the real numbers.

That is the point of the method. The per-foot number starts the conversation. The monthly total finishes it.

The fee is the number everyone asks about. The reserves decide whether it stays that way. A building with well-funded reserves has saved for its roof, elevator and plumbing. A building with thin reserves may raise the fee or charge a special assessment when those repairs come due.

Two condos at the same price and the same fee can cost very different amounts over five years. The reserve study and the budget show which is which. We read both with you. Our page on buying a condo in Los Feliz explains what those documents contain.

• Stopping at price per square foot. Instead, build the full monthly total for both homes.
• Treating the HOA fee as pure extra cost. Instead, list what it covers and add those costs to the house.
• Leaving house repairs out of the monthly number. Instead, add a monthly set-aside, the same way an association funds reserves.
• Ignoring approved assessments. Instead, ask for the seller's disclosure of any increase the board has approved that is not yet due.
• Comparing listing square footage as if it were exact. Instead, measure during the inspection period if size is part of the decision.

Rooster Homes™ is a Los Feliz, Los Angeles real estate brokerage owned by Brandon and Sarah Arlington (DRE #02051216) helping buyers and sellers of Los Feliz condos and townhomes. We pull the current price, fee and what the fee covers for every home you consider, and we set them side by side. Your lender and insurance agent fill in the loan and policy numbers.

First purchase? Our guide for first-time condo buyers covers the fee and the loan side in more depth. When you are ready, send us a note. Let us know what works best for you, and we will coordinate our schedule around yours.

This post explains a general method. It is not financial, lending or tax advice. For your situation, talk with your lender and your CPA.