FAR is floor to air ratio. Properties in dense markets such as New York City are often sold based on the FAR because it stipulates how many square feet you could develop on the site versus. Often in tight markets the underlying property (lot) may be more valuable without the existing improvements if a more dense use is permitted by the zoning code. If the lot yyou are looking at has an FAR of 2.5 for residential the maximum square footage that you can develop on the site is 2.5 x 8303 = 20,757.50 s.f. of improvemets and the asking price based on $120/FAR would be $2,490,900.00 if they are calculating the asking price based on the residential FAR of 2.5 and not the other uses FAR of 1.5 .
May 8, 2009