Hot Tips For Selling Your Condominium
Would you like some of the best tips for selling a condo?
Whether it is a buyer’s or seller’s market, condo owners always want 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 entirely different because these two housing choices are unique. Houses are a completely different animal in many respects.
There are many condos to choose from, so you want to do everything possible to make your condo stand out.
From being in real estate for the past three decades there are several things you can do that will give you advantages over the competition. You can turn these factors into what puts you over the top. I have always enjoyed selling condominiums through the years. I own units in three different states so I also understand the challenges.
If you want to learn how to sell a condo, you’ve come to the right place! 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. You are probably aware of this now, but you should know that it also applies to your sales.
The HOA may limit 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. Regarding marketing your place, the association may not allow signs in front of your unit.
They might also restrict whether you can put a for sale sign in the window. Understanding the procedures the condo association will put on you is essential.
If you own a townhouse, these rules will probably be similar.
Navigating HOA Considerations
When selling a condominium, knowing the considerations and limitations imposed by the Homeowners Association (HOA) is crucial. All condos have an HOA, which can have rules affecting how you can sell your property. These may include restrictions on marketing, the need for the HOA to pre-approve buyers, and even the possibility of the HOA having the right of first refusal on the sale.
Many communities won’t let homeowners put up a for-sale sign. It is a situation that can be annoying when you find these things out at the last minute.
I recommend you familiarize yourself with your HOA’s rules. You should also ensure you’re in good standing regarding fees and other requirements. This preparation can prevent delays and complications during the sale process.
Listing Your Assets Helps in Selling a Condo
These are the features that make your condo great. Whether you have extra storage space, a new range, or an oversized garage, you want buyers to know about it.
It is easy to forget your condo’s amenities after living there for a while, so take a moment and reassess. It can help 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 they are hopefully pros at picking out the positive things in a listing.
Listing your assets becomes crucial with a condo because fewer things distinguish one unit from the next compared to a home. The customization levels between the two can be far less extreme.
The builder offered only a few models and customization in most condo complexes.
Don’t Forget to Emphasize The Strengths of The Community
This, of course, is far different than a custom home where there could be countless modifications. One of the things an outstanding Realtor will do is help put together creative real estate marketing.
You can do endless things, 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 you live in.
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 regarding marketing!
Pricing Your Condo With The Market is Vital to Selling
Selling a condo is no different than selling a house in terms of appropriate pricing. It is crucial to get the pricing right.
This is the problem every homeowner must deal with when deciding to sell.
Your condo will only sell if it is priced competitively. The higher you price it above what similar units cost, the longer your listing will languish on the market.
The longer it sits unsold, the more of a reputation it develops. Days on the market are a killer in real estate.
The longer it takes to sell, the harder it is to make a deal. It is far better to price competitively and sell now than to be stuck with your condo for six months and sell for a fraction of its worth.
How to price a home is one of the most important considerations for selling a condo. If you get the price wrong, nothing else you do will matter.
As mentioned above, condos have far fewer customizations, so if all the other similar units are selling for X, don’t expect yours to sell for Y without a good reason.
Having heavy-duty nails on your deck, extra beautiful vanity mirrors, and a new master bedroom toilet are not great reasons to expect more money.
Understanding Your Condo’s Market Value
To accurately price your condo, it’s essential to understand the local real estate market and how your property fits within it. This involves analyzing comparable sales data, or “comps,” which are recent sales prices of similar properties in your area.
Factors such as your condo’s location, size, amenities, condition, and any unique features can influence its market value. Consulting with a real estate agent with experience selling condos can give you a better understanding of how to price your property competitively.
Remember, pricing your condo correctly is key to attracting potential buyers and achieving a successful sale. When you’re priced right, offers usually follow.
Arriving at The Right Price is Easier With Condo Sales
One thing you need to understand is that condos are far easier to value than custom homes. The typical condo development only offers a handful of designs.
This makes valuing properties far simpler. Using comparable sales data (comps) is far easier when you do not have to make significant adjustments in a comparative market analysis based on custom amenities or a lot’s characteristics.
Using accurate comparable sales data can help you price your condo competitively.
Timing When You List For Sale Matters
When you want to sell a condo fast, timing matters. It is crucial to list for sale in the best selling season, which in many areas happens to be the Spring.
However, other selling seasons may be just as good if you live in a warm weather climate or vacation destination. Keeping an eye on market demand in your area can help you time your sale for the best possible outcome.
Sometimes, when you need to sell a condo fast, you don’t have the luxury of waiting. You’ll have to balance your needs with getting the maximum price. A local real estate agent should be able to advise on the peak selling season.
Getting Your Condo FHA Mortgage Approved Helps Selling
This one may be difficult, but it will be well worth the effort if you can pull it off. An FHA mortgage is a type of financing run by the Federal Housing Administration.
The benefit of an FHA mortgage is that it allows a borrower to come up with only a 3.5% down payment.
It is, in fact, one of the most traditional forms of financing. By not getting a buyer who wants to purchase using this type of funding, you eliminate many qualified buyers. This should matter to you because, without FHA approval, your condo remains unavailable to many customers who are ready and willing to give you the money you want for your place.
Many buyers have high 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, you must convince the association of its necessity!
Undoubtedly, having a complex with FHA mortgage approval makes every owner’s property worth more money.
Take 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 When Selling
You can hire a professional stager, ask your realtor for help, or just do it yourself, but you need to make your condo look appealing to potential buyers.
Staging and home sale preparation means giving them space to see themselves making a home there. It would be best if you cleaned the place thoroughly and removed all the clutter.
One of the best ways to remove things you no longer want is to do a donation pickup. Many charities will come to your condo and take away the things you no longer want for free.
You will make your condo look much better while helping a needy family.
Many Realtors, including myself, advise removing family photos and other memorabilia that might repel buyers. You want them to see themselves and their families there.
In condos, removing clutter from storage spaces is of particular importance.
A condo often has limited storage, 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 guide to make your condo more appealing to buyers.
Remember, you want every edge you can get when nothing distinguishes you from the competition. Don’t underestimate how attractive a clean and attractive unit can be to a buyer who lacks “vision.”
Don’t Forget About The Exterior
Enhancing the curb appeal of your condo can make it stand out to potential buyers, even if it’s part of a larger complex. I suggest you weed the landscaping, add some colorful flowers, and make sure there are no obvious blemishes of problems with the exterior condition.
Be Ready For a Home Inspection Before Selling
Most buyers will want to have the condo inspected before they buy it.
Home inspections are one of the biggest hurdles in any real estate transaction, whether a home or a condo. Understanding how to prepare for the buyer’s home inspection is super valuable, and it could make or break a sale.
This is why making necessary repairs before putting the condo on the market is vital.
The reference above shows some of the more common defects discovered during a home inspection. It is important that you pay particular attention to these items. Again, your agent can help advise you in this area.
Some things, like mold infestation, radon issues, or structural defects, must be addressed if you hope to sell. Take care of them now so they don’t lead to problems later.
Getting Condo Docs Put Together Helps Sell Your Unit
Not all condo communities are worthy of pride, but if you have a great one, it can help you sell your condominium.
If you want to point to all of the great things about where you live, getting an official set of documents from the association to answer buyers’ questions can be helpful. These documents are called the covenants, conditions, and restrictions, or CC&Rs for short.
These reports will cost you a little bit of money, but they can prove valuable when you want buyers to know your well-run community’s essential details.
The buyer will eventually ask for this anyway. In fact, a contract to purchase is usually contingent on an acceptable review of the documents. A buyer will also ask to see a set of financial documents.
They do this 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 crucial to be prepared to have the items a buyer will request. If there is a known issue regarding your complex, spell it out upfront before a buyer can overreact.
Be Upfront With Buyers About Special Assessments
Be prepared to discuss any special assessments with potential buyers, as these can affect their decision to purchase.
Special assessments are charges levied by the condo association for major repairs or improvements that can vary widely in amount. They can be a significant factor for potential buyers considering your condo. If a special assessment is upcoming or currently being paid off, you must disclose this to potential buyers.
How you handle this disclosure can impact their interest and the sale’s negotiation. I recommend being upfront and transparent about any special assessments and how they will be dealt with in the sale. Doing so can help build trust with potential buyers and smooth the path to a successful transaction.
Be Able to Explain The HOA Fees
Understanding your HOA fees is crucial when selling your condo, as potential buyers will want to know the property’s monthly or yearly costs. Be prepared for buyers to ask questions about the fees.
It costs money to live in the condo association. Buyers need to know 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.
Hopefully, you can quickly use the advice to get your condo under contract for top dollar.
Hire A Realtor That Sells Condos
Not all real estate agents can do all things. When selling a condominium, you want an agent with experience.
An agent can prove invaluable in your sale, handling all of the marketing, negotiations, and showings.
This is extremely useful if you have a job and a life.
Selling a condo takes a lot of time and effort, so people hire real estate agents to handle all these tasks.
An agent can advise you on what to do and what not to do when selling your condo. This advice and guidance is usually well worth the money and often results in a higher selling price.
You can try to sell a condo for sale by the 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 with experience selling condos is vital because additional steps must be taken over and above what happens when selling a home. Things like:
- Getting a 6d certificate shows the unit owner is in good financial standing with their condo fees.
- Obtaining a certificate of insurance provides details of the coverage limits, policy effective and expiration dates, and insurance carriers that insure the condominium association.
Avoid Costly Upgrades
Avoid it unless your agent tells you you must install a new kitchen to sell your condo. Upgrades, especially the more expensive ones, are not always a wise investment.
However, every market is different, so what may be necessary 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 my area, this would typically be the case. Somewhere else, it could have minimal impact on the final price for your condo.
It would be best to determine the best low-cost improvements to sell a condo. Listening to your agent is extremely important in this area.
There may be some upgrades that need to happen. Just avoid going wild with renovations. Save your money for your new home.
Can You Sell a Condo With Tenants Present?
The answer is yes; you can sell a condo with tenants. Depending on the length of the rental agreement, you may need to provide notice of the sale to the tenant. If you’re selling with tenants, it’s essential to understand and communicate their rights during the sale process.
Some buyers may be amenable to taking in tenants for a while, and if a long-term lease is in place, it can typically be transferred to the new owner without any changes.
If a buyer is not interested in taking on tenants and needs to vacate the property before the sale, a buyout of the contract may be negotiated by providing monetary compensation to enable them to relocate.
This option may be costly. Here are some additional tips for selling a house with tenants. If your condo has been an investment property, highlighting its rental history can attract potential buyers looking for a good investment.
Final Thoughts
Following the advice outlined here, selling your condo will be easy. Please get in touch with me if you are in the Metrowest, Massachusetts, area and need assistance selling.
Additional Helpful Articles Sharing Tips For Selling a Condo
- How to boost your condo’s value—This Old House provides excellent advice on how to make your condo more valuable.
- What are the best upgrades to sell a condo – see some of the best improvements you can make to your condominium that will help with a more timely sale.
Use these resources to increase your chances of selling your condo for the most money in the shortest time!
About the Author: Bill Gassett, a nationally recognized leader in his field, provided real estate information on selling a condo fast. Bill has expertise in mortgages, financing, moving, home improvement, and general real estate.
Learn more about Bill Gassett and the publications in which he has been featured. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. For the past 38+ years, Bill has helped people move in and out of Metrowest towns.
Are you thinking of selling your home? I am passionate about real estate and love sharing 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, Natick, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge Massachusetts.
Just like you mentioned, I’m having a hard time pricing my condo. I’m not sure what the housing market is like right now, so I’m not sure what the accurate way to price it is. Can I hire a Realtor just to help me put it on the market?
Rachelle I am quite sure you will be able to find a Realtor that would love to help you price your condo properly.
I like your comment about how every condo association has rules and guidelines. I can definitely see how it would be important to know these rules when looking to sell a condo. I would think it would also be important as a buyer to ask about the rules of the association to make sure you knew what you were getting into. On either side I would think that a good realtor would be able to help you get through it.