The Condo Next Door Is Not Always Your Comp. How Smart Pricing Works in San Diego and Chicago

Proximity is not the same as comparability. A new piece from HousingWire argues that the sale next door may not be the best guide to what a condo is worth. The missing step, it says, is defining the market a property actually competes in before reading any of the data.

We agree, and we see it every week in both of our markets.

Take two units in the same downtown San Diego tower. One faces the bay on a high floor and has two parking spaces. The other looks at the building across the street and has one. On a map they are the same address. To a buyer they are different products, and they draw different shoppers. Using one to price the other can leave a seller with money on the table, or push a buyer to overpay for the lesser unit.

Chicago makes the point even more clearly. A vintage two-flat conversion in Lincoln Park, a full-amenity high-rise on the lakefront, and a boutique new-construction building in the West Loop can all be listed as "condos" a few miles apart. They do not compete with each other. Assessments, special assessment history, reserve health, rental rules, and parking all shape value, and none of that shows up in a simple radius search.

What this means for sellers. Automated estimates and quick comp pulls tend to lean on distance and square footage. A stronger pricing case starts with a question: who is the likely buyer for this home, and what else are they touring? That set of competing listings, active and recently sold, is the true market. Sometimes it sits in the same building. Sometimes it is three neighborhoods away.

What this means for buyers. When a listing is justified by a nearby sale, ask what made that sale comparable. View, floor, outdoor space, HOA dues, and building condition can each move value more than a block of distance. A thoughtful offer accounts for those differences instead of anchoring to a headline number.

Condos are where this matters most, because buildings vary so widely in finances and rules, and because buyers comparing high-rise living in Little Italy or Streeterville are often weighing very different lifestyles.

Our team builds every pricing recommendation around the market a home truly competes in, then supports it with the sales that belong in that set. If you are thinking about selling a condo in San Diego or Chicago, or weighing an offer on one, we are happy to walk through how your comps should be defined.