Hot Tips For Selling Your Condominium
With the real estate market steadily improving, many condo owners are looking to sell. But selling a condo is not usually as simple as putting a sign up. It takes a lot of work to sell quickly, and for the best possible price. Selling a home vs a condo can be quite different because of the nature of how these two housing choices are unique. Read on to discover some important tips for selling your condo.
There are a lot of condos to choose from out there, so you want to do everything you can to make your condo stand out. Want to learn how to sell a condo? Kick back with your cup of coffee and soak in the advice.
Know What Your Condo Association Allows
Every condo association has a set of rules and guidelines – things you can and cannot do with your unit. This is something you are probably aware of by now, but you should know that it usually applies to your sale as well. The association may place limits on who you can and cannot sell to. You may also have to get the buyer pre-approved by the association.
This is all stuff you should know before you list your condo. In terms of marketing your place, the association may not allow signs out in front of your unit. They might also potentially restrict whether you are able to put a for sale sign in the window as well. Understanding procedures the condo association will put on you is important.
List Your Assets
These are the features that make your condo great. Whether you have extra storage space, a new range, or a big garage, you want buyers to know about it. It is easy to forget all of the amenities of your particular condo after you have lived there a while, so take a moment and reassess. It can be helpful to look at ads for similar condos in your area, to see what features people care about. You can also ask your Realtor to help you with this list, as he or she is hopefully a pro at picking out the positive things in a listing.
Listing your assets becomes really important with a condo because there are far fewer things that distinguish one unit from the next when compared to a home. The customization levels between the two can be far less extreme. In most condo complexes there are only a handful of models as well as customizations that the builder offered.
This of course is far different than a custom home where there could be countless modifications. On of the things an outstanding Realtor will do is help put together creative real estate marketing. There are endless things you can do but putting together a list of all the many features that stand out in your condo is important. Maybe it’s not just your condo you want to emphasize but the area in which you live.
Does the town or city have top notch schools? How about fantastic highway access? These are the kinds of things that should be emphasized to a buyer. When there is lots of competition the little things you do matter when it comes to marketing!
Price Your Condo With The Market
This is the problem every homeowner must deal with when deciding to sell. Your condo will only sell if it is priced competitively. The more you price beyond what similar units cost, the longer you can expect your listing to languish on the market. And the longer it sits unsold, the more of a reputation it develops. The longer it takes to sell, the harder it is to finally make a deal. It is far better to price competitively and sell now, than to be stuck with your condo for six months and wind up selling for a fraction of what it’s really worth. How to price a home is one of the most important considerations for a selling a condo. If you get the price wrong nothing else you do will matter.
As mentioned above there a far fewer customizations in condo’s so if all the other similar units are selling for X don’t expect yours to sell for why without there being a good reason. Having heavy duty nails on your deck, extra nice vanity mirrors, and a new master bedroom toilet are not great reasons for expecting more money.
One thing you really need to understand is the fact that condo’s are far easier to value than custom homes. The typical condo development only has a handful of designs. This makes putting a value on a unit far easier. Using comparable sales data is far easier when you do not have to make a significant amount of adjustments based on custom amenities or even the characteristics of a lot.
Get Your Condo FHA Mortgage Approved
This one may be difficult but it will be well worth the effort if you can pull it off. There is a type of financing run by the Federal Housing Administration that is known as an FHA mortgage. The benefit of an FHA mortgage is the fact it allows a borrower to come up with only a 3.5% down payment.
It is in fact one of the most popular forms of financing. By not having the ability to get a buyer who wants to purchase using this type of financing you eliminate a lot of qualified buyers. This should matter to you, because without FHA approval, your condo remains unavailable to a significant number of buyers ready and willing to give you the money you want for your place. There are a significant number of buyers who have great incomes but have not saved a large enough down payment for conventional financing.
While getting your complex FHA approved may not be up to you individually, it will be important for you to convince the association of the necessity! Without a doubt having a complex with FHA mortgage approval makes every owners property worth more money. Take a look at a comprehensive explanation of why getting FHA mortgage approval for a condo complex is so important. This is one of the best tips for selling a condo.
Stage Your Condo Properly
You can hire a professional stager, ask for help from your Realtor, or just do it yourself, but you need to make your condo look appealing to potential buyers. This means giving them space to see themselves making a home there. You need to get the place cleaned – thoroughly – and remove all the clutter.
Many Realtors including myself advise removing family photos and other memorabilia that might push away buyers. You want them to see them and their families there. In condos it is especially important to clear out clutter from storage spaces. There is often limited storage in a condo, so you want to make every bit count when showing the place. Here are some simple but effective interior and exterior staging tips. Use this guidance to make your condo more appealing to buyers. Remember you want every edge you can get when there is not much that distinguishes you from the competition. Don’t under estimate how a clean and attractive unit can be to a buyer who does not “vision”.
Be Ready For a Home Inspection
Most buyers are going to want to have the condo inspected before they buy it. One of the biggest hurdles in any real estate transaction whether it is a home or condo is the home inspection. Having an understanding of how to prepare for the buyers home inspection is super important! In fact it could make or break a sale. This is why it is important to take care of any necessary repairs before you put the condo on the market.
In the reference above you will see some of the more common defects that are discovered during a home inspection. It will be important you pay particular attention to these items. Again, your agent can help advise you in this area. There are some things, like a mold infestation, radon issues or structural defects that must be addressed if you hope to sell. Take care of it now so it doesn’t lead to issues later.
Get Condo Docs Put Together
Not all condo communities are something to be proud of, but if you have a great community it can help you sell your condominium. If you want to be able to point to all of the great things about where you live, it can be useful to get an official set of documents from the association so that you can answer questions that the buyers have. These documents will cost you a little bit of money, but they can prove valuable when you want buyers to know all the important details of your well-run community.
This is something the buyer will eventually ask for anyway and in fact more often that not a contract to purchase is usually contingent on acceptable review of the docs. A buyer will also ask to see a set of financial documents as well. They do this in order to ascertain the financial health of what they are buying into. These are some of the most important tips for buying a condo that I have discussed at length. As a seller it is important to be prepared to have the items a buyer is going to request. If there is a known issue regarding your complex spell it out up front before a buyer has a chance to overreact to it.
Hire A Realtor That Sells Condos
Not all real estate agents can do all things. When you are selling a condominium, you want an agent that has experience in this area. An agent can prove invaluable in your sale, handling all of the marketing, negotiations and showings. This is extremely useful if you are a person with a job and a life. Selling a condo takes a lot of time and effort, which is why people hire real estate agents to deal with all of these tasks.
An agent can advise you on what to do, and what not to do, when selling your condo. This is advice and guidance that is usually well worth the money, and often results in a higher selling price. You can try to sell a condo for sale by owner but it is usually not advisable. In many condo developments you are restricted from even putting out a for sale sign which makes reaching buyers difficult.
Choosing an agent that has experience in selling condos is important because there are additional steps that must be taken over and above what happens when selling a home. Things like:
- Getting a 6d certificate showing that unit owner is in good financial standing with their condo fees.
- Obtaining a certificate of insurance provides a details of the coverage limits, policy effective and expiration dates, and insurance carriers that insure the condominium association.
Avoid Costly Upgrades
Unless your agent tells you that you need to put in a new kitchen to sell your condo, avoid it. Upgrades are not always a wise investment, especially the more expensive renovations. Every market however is different so what may be important in one place may not have the same impact in another.
For example, installing all new granite counters, may cost you thousands of dollars, yet you may get every dollar back and more by doing so. In may area this would typically be the case. Somewhere else it could have very little impact on the final price you get for your condo.
What you should do is a get a handle on the best low cost improvements to sell a condo. This is one area where listening to your agent is extremely important. There may be some upgrades that need to happen. Just avoid going wild with renovations. Save your money for your new home.
Let Buyers Know About Costs and Fees
It costs money to live in condo association. Buyers need to be aware of what they are getting into with the fees required to live in your condo. Besides, there is no point in working hard on a sale when ultimately the buyer will be denied – by the lender, the association, or someone else – in the end. One of the things a buyer will probably ask if they are smart is if there are any special assessments are coming up in the near future. You should be ready to explain what they are, how much it will impact the condo fee and for how long. These are all some of the best tips for selling a condo!
Additional Helpful Articles Sharing Tips For Selling a Condo
- How to boost your condos value via This Old House.
- What are the best upgrades to sell a condo via Own a Condo.
Use these resources to increase the chances you will sell your condo in the least amount of time for the most money!
About the author: The above Real Estate information on tips for selling a condo was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at [email protected] or by phone at 508-625-0191. Bill has helped people move in and out of many Metrowest towns for the last 28+ Years.
Thinking of selling your home? I have a passion for Real Estate and love to share my marketing expertise!
I service Real Estate sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton and Uxbridge MA.