You’re scrolling listings and something jumps out at you.

Same building.
Same general layout.
Similar square footage.

But one condo is priced significantly lower than the others.

Your first instinct is probably the same as most buyers’:
“What’s wrong with it?”

Sometimes the answer is nothing at all. Other times, there’s a very real reason — and knowing the difference can save you from overpaying or walking away from a great opportunity.

Let’s break down why condos in the same building can be priced so differently — and how smart buyers figure out whether a lower price is a red flag or simply a trade-off.

Not All Condos in the Same Building Are Equal

Even when units share the same address, price differences are often driven by livability, perception, timing, and strategy, not hidden defects.

Here are the most common reasons one condo is cheaper than another — even in the same building.

1. Floor Level, View, and Exposure Matter More Than Buyers Expect

Two condos can look nearly identical on paper and still live completely differently.

I once sold an upper-level unit in a building where another, similar unit was also on the market. The price difference between the two was close to a million dollars.

Part of that gap came down to renovations — but the real driver was the view.

• The lower-level unit looked directly at the back of a neighboring townhome

• The upper-level unit had a straight-on, iconic DC view — the Lincoln Memorial, the Washington Monument, and the Capitol all lined up in one breathtaking sightline

Here’s what happened next:
After buyers toured the unit with the view, no one wanted the lower-level unit anymore, even though it was priced far less. That listing simply sat.

Same building.
Same address.
Completely different daily experience.

Why this affects price:
Buyers don’t just buy square footage. They buy light, privacy, noise levels, and what they see every single day. When those factors are permanent, the pricing differences usually are too.

2. Layout Differences That Affect How a Condo Lives

Even within the same building, layouts can vary more than buyers expect.

• Smaller or awkwardly shaped bedrooms

• Missing den, balcony, or powder room

• Poor flow or wasted space

Why this affects price:
Two units can be the same size, but one simply functions better. Buyers consistently pay premiums for usability — not just numbers on a floor plan.

3. Condition and Updates (Cosmetic vs. Costly)

Lower-priced units are often less updated.

• Original kitchens or bathrooms

• Older appliances or HVAC systems

• Worn flooring or dated finishes

Important distinction:
Cosmetic issues often represent opportunity. Structural or mechanical issues require deeper scrutiny.

Why this affects price:
Buyers mentally subtract renovation costs — and usually add a buffer for inconvenience and uncertainty.

4. Sometimes It’s Not What You Can See — It’s What You Smell

This is one of the most underestimated pricing factors.

In a building I know extremely well, a unit came on the market priced much lower than I expected. On paper, it checked all the boxes:

• Good layout

• Decent view

• Strong location within the building

I couldn’t understand the discount, so I went to see it in person.

The moment I opened the door, I understood.

Even though the unit was vacant, I was overwhelmed by a heavy cigar odor — the kind that doesn’t disappear with fresh paint and open windows. Removing it properly would take months and real money.

Why this affects price:
Smells trigger instant emotional reactions. Buyers don’t rationalize them — they recoil. When an odor is difficult to eliminate, the market prices in both the cost and the risk.

5. Timing Within the Same Building Can Create Price Gaps

Sometimes pricing differences have nothing to do with the unit itself.

• One seller lists before a condo fee increase

• Another lists after buyers adjust expectations

• One unit hits the market during stronger demand

• Another enters during a slower window

Why this affects price:
The building didn’t change — the market did.

6. Honest Pricing vs. Inexperienced Pricing

Not all pricing differences are intentional — and they’re not always driven by the seller.

Sometimes the issue is agent experience.

Agents who primarily sell single-family homes don’t always price condos correctly, because condo valuation works differently. It’s easy to pull comps based on square footage alone and arrive at a higher price.

But that approach often misses a critical distinction:

• A true one-bedroom is not the same as a one-bedroom plus den

• Dens significantly affect usability, buyer demand, and resale value

• Two units with similar square footage can live very differently

When a one-bedroom is priced using one-bedroom-plus-den sales as comps, the result is often overpricing — not because the seller is unrealistic, but because the comparison itself is flawed.

Why this affects price:
Buyers don’t buy spreadsheets. They buy how a space functions. When pricing ignores that reality, listings tend to sit — and eventually become “the cheaper one” after price corrections.

7. Financing Can Quietly Change What a Condo Is Worth

Not all price differences are about the unit itself. Sometimes they’re about how the unit can be financed.

When Financing Limits Push Prices Lower

Prices can dip when:

• FHA approval is lost

• Owner-occupancy ratios fall below lender thresholds

• Insurance or reserve requirements tighten

Fewer eligible buyers usually means lower prices — even if the condo itself hasn’t changed.

When Financing Can Support a Higher Price

On the flip side, some condos can justify a higher asking price because of the seller’s existing loan.

If a seller has an assumable FHA or VA loan with a very low interest rate — say 3.0% — a qualified buyer may be able to take over that loan.

That can mean:

• Paying more for the condo

• But still having a lower monthly payment

• Compared to a cheaper unit financed at today’s higher rates

Why this matters:
Assumable low-rate loans are rare and valuable. In some cases, the “more expensive” condo is actually the better financial deal.

The Big Takeaway for Buyers

A cheaper condo in the same building isn’t automatically a problem. And a higher priced condo doesn't mean it is overpriced.

Sometimes it reflects:

• A permanent trade-off (like view or exposure)

• A fixable issue (like updates or odor)

• Timing, strategy, or pricing experience

• Financing differences that affect monthly cost

The smartest buyers don’t ask, “What’s wrong with it?”
They ask, “Why is it priced this way — and does that trade-off work for me?”

Frequently Asked Questions

Is a cheaper condo always a red flag?

No. Many price differences come down to livability, layout, smell, timing, or financing — not hidden defects.

Can smells really affect value that much?

Yes. Persistent odors, especially smoke, can materially affect buyer interest due to the cost, time, and uncertainty involved in removal.

Why would one unit sit while another sells in the same building?

Once buyers experience a superior unit — better view, better feel, better layout — the less desirable unit can lose appeal, even at a lower price.

Do cheaper units appreciate less over time?

It depends on why they’re cheaper. Units discounted for fixable issues often close the gap. Units discounted for permanent features usually always trade at a relative discount.

Can a higher-priced condo ever be the better deal?

Absolutely. An assumable low-interest FHA or VA loan can result in a lower monthly payment than a cheaper condo financed at today’s higher rates.

What’s the smartest way to evaluate a lower-priced condo?

Compare recent sales in the same building, understand why the unit is discounted, and decide whether that trade-off aligns with how you’ll live — and eventually resell.