Are you seriously thinking about putting your condo up for sale? In that case, you will need some helpful advice on how you can make your condo unit or perhaps co-op, more attractive to would-be buyers so that you can sell your place quickly while getting the price that you want for it. Now that you are considering selling your condo unit, perhaps you need some info that will help you to understand the entire process, which could be a little complicated. For one, there are certain regulations or rules imposed by condo boards or associations, and you should follow these. The tips below will also shed some light regarding how you could settle everything efficiently, to expedite the selling process.
1Selling Is A Challenging Task
It is particularly difficult to successfully sell a condo quickly, especially during these times when the market is unstable. In general, houses are considered to have a higher value than a condo. Comparing the dollar-to-dollar value for every square footage a condo unit will often be valued less than a single-family house.
This was not the case during the times called housing or property bubbles. Here, single-family detached houses became extremely expensive, and many saw condos as more prudent alternatives. Because of this, the prices of condo units quickly increased. In 2005, a lot of condo units even cost more than the usual single-family home, but when the market declined, so did the trend and it even went backward.
2Condos Are Still In Demand
Many people still prefer condos more than the traditional types of houses. There is always a demand for co-ops and condos, but such are harder to sell because of the characteristics that they possess. Moreover, advertising your condo is crucial if you are planning on selling, and putting up a "For Sale" sign in front of your unit, may not be the best move on your part.
The front yard of your condo unit is an area that is shared by many condo occupants; because it's a common area, individual unit owners are prohibited from utilizing this place for private use. So, it's not feasible to put up a "For Sale" sign. Still, there are many creative ways to let people know about your condo that's for sale.
3Spread The Word About The Condo For Sale
If you don't have the time nor the inclination to do the selling on your own, get in touch with a respected real estate agent and inform him that you want to sell your condo. Once you finalize an agreement with an agent, he will be responsible for attracting buyers and telling you about them. Second, print out some flyers and place them on your unit's window or the garage door.
If your windows are facing the street, all the better because passers-by will readily see the signs you've put up; unless a neighbor or someone from the board makes a complaint about this. Be aware that there are homeowners associations (generally for condos) and boards (for co-ops) that prohibit their residents from engaging in such activities. Such rules are often difficult to enforce, but these groups do try.
4But Don't Forget The Rules
When a single-family house is for sale, open houses are done so that potential buyers can check out the place. In some cases, anyone can take a look at the place even when no one is around; they use a lockbox so that a would-be buyer or agents can enter without any problem. On the other hand, when it comes to co-ops or condos, entry to the premises can be difficult since permission is required.
It's more prudent to schedule a showing rather than giving your entry code to a bunch of people. In such cases, you will need more time to show all those people around your condo. Expect your weekends to be busy with open houses. This is a challenging job, and things will be easier if you're trying to sell a one-family home.
5Share Bylaws With Potential Buyers
A condo or co-op is very different from a one-family house, not only because the former is generally cheaper, but living in a condo also means being prepared for a more interconnected relationship with others. Buyers, especially those who've never lived in a condo or co-op before, must get acquainted with the usual regulations or bylaws too. By doing so, an interested buyer would be able to determine if he can easily shift from the lifestyle that he knows, to this new form of existence.
It's not all about the view or the amenities that one could enjoy when living in a condo. By telling interested buyers about the regulations, and all the terms and conditions regarding the unit that you're selling, they will be able to do self-assessments to see if they're ready for this alternative lifestyle right from the beginning. Even if you don't inform them about such things, chances are they will know about these from other sources.
6Be Up Front With All The Details
Any buyer, even you (in case you do find yourself in this position), would likely back out of a deal when a seller hides crucial details about the place that he is trying to sell. By providing all the information regarding your condo for sale, your buyers will readily trust you. They will decide on your property, and you won't be left feeling disappointed.
It is a common practice for sellers to give potential buyers, a list of all the regulations that have an impact on the property for sale and on the future resident as well. Moreover, be aware that co-ops are stock companies. A board heads these properties, and an owner will be given either a stock or a lease on a condo unit.
7The Decision Isn't Yours Alone
Although you may own your condo and you decide to sell it, your final decision will still require the approval of the board. After the board approves, they will repossess your stock, and then this, as well as the new lease will be offered to the new owner. This entire process does not have any impact on the selling procedures, and you will receive your equity which will be in the form of cash.
Co-op boards are prohibited from refusing sales based on reasons, such as religion, gender, race, and other protected classifications. On the other hand, they could refuse an interested party based on financial reasons. Because of the control that a co-op board has, this is generally more desirable and valuable to some people.
8Who Are Better Off In Condos Or Co-Ops?
It's but natural for potential buyers to want a little control when it comes to their neighbors. Co-ops want to ensure that the buyer has the financial capacity to regularly pay his or her share of the mortgage, which could be for the combined units. In case a person is unable to meet his financial obligations, others are left to do this; thus, the board plays a vital role in making sure that any would-be buyer, possesses the financial capability to live there, and make his payments.
Also, when you speak with the board, or perhaps a co-op's general manager, you will get a sense about what sort of buyer they prefer, which will help in avoiding unnecessary stress brought about by dealing with a person who is not qualified. In general, you can sell your condo to anyone you want. However, it's a must for new owners to follow the condo development's standards and other regulations.
You are now aware of the challenges involved in successfully selling your condo or co-op. You can now sell your place if you want because condos are still in demand, especially today when a lot of young professionals and small families prefer to move out of the homes that they can no longer afford, and into a cheaper residence. Discuss your interest in selling your condo or co-op with a real estate expert, so that you'll understand all the options in front of you. The best of luck in this undertaking!