Are You Considering Selling Your Condo?
By Paul Esajian on December 18, 2015
Want to sell your condo faster, and possibly for more money?
With property values rising, it can be a fantastic time to sell your condo. However, there can be quirks associated with selling condominium units. The main issues that can make or break profit in selling an apartment mainly center around the uncertainty and fears that buyers have built up about them. There are a lot of unknowns, and both sellers and Realtors often do a poor job at solving these issues for potential buyers. So how can you solve this, highlight the perks of buying your condo unit, and pave the way to a speedy and successful sale at a great price?
Condo Fees
How much are the condo association fees? Most buyers are aware that additional condo or HOA fees will be involved, but too few listings list them. If you don’t, there is a good chance that potential buyers will just assume they are too high, or skip on to the next listing which has enough detail for them to make an instant decision. That’s a shame if your condo fees are reasonable. Provide that info, and what is included. New buyers don’t know. If insurance, a community pool, gym, or other services are offered those can be massive selling points. Don’t leave them out!
Solvency of the Condo Association
One of the biggest issues that came out of the crises of the early 2000s was associations going bankrupt. Many couldn’t afford to keep up maintenance and services. Many depleted their reserves. This can be scary for buyers, and can prevent them from obtaining financing. No one just wants to roll the dice when applying for a mortgage or making a deposit today. If your condo association is in good financial shape, and recent buyers have not had issues getting loans, shout about it!
Special Assessments
Special assessments can be a huge concern for buyers of condos and units with Home Owners Associations. These can quickly add tens of thousands of dollars to the cost of a property. So are there any outstanding assessments or not? Have any big repairs been made recently that will reduce the chances of a special assessment in the future?
Sound Proofing
One of the big negatives of a condo is noise. You may have 4 adjoining neighbors. If they aren’t noisy, buyers with kids or that work nights may worry they’ll receive too many complaints for the noise they make. There have been a lot of stick built buildings going up, even in areas where they haven’t been common in the past, like Florida. So how sound proof is your condo? What are the walls, floor, and ceiling made from?
Neighbors
What are the neighbors like? What type of buyer will fit in well in this building? Or not?
Justifying Your Asking Price
Don’t expect potential buyers to recognize this as a good deal. They may not be looking at the same information you are. Do you have recent comparable sales or pending sales that justify your asking price? Did this condo appraise for double your asking price a few years ago? The better job you can do of selling the value on first contact the better the chances of a faster sale, on your terms.
Age & Quality of the Building
Today’s property buyers are far more savvy and inquisitive than in the past. They are finally understanding that buildings don’t last forever, and the flaws that can be found in even the most expensive and luxurious condominium projects. They don’t want to take a 30 year loan on a property that is only going to last 15 years. So how new is this building? How recently has it been renovated? How long is it likely to last?
Condo Rules
Savvy buyers and investors know that condo rules can kill their investment fast. Don’t waste your time with buyers that are going to back out once they find out the limitations. Don’t lose buyers when you could be highlighting how easy the rules are. So how tough is it to get condo approval in this association? What are the rules on leasing units out? What about guests?
Get a Great Real Estate Agent
If you are going to use a real estate agent, get a great one. The industry is littered with terrible Realtors. Most no longer seem to answer inquiries from prospective buyers. They focus on getting listing after listing, and leave the sales work to other agents. They are going to get paid anyway, so why should they care. Well you care! That means losing dozens of prospective buyers and being able to pay a lot less commission. So demand an agent that is hyper-responsive. Test them before and during the listing. Not by offering listings, but by posing as a buyer. How fast do they respond? How great is their follow up? If it isn’t awesome – get a new agent fast.