Condos that are completely updated will sell above and beyond something that’s not. A condo buyer does not want to go in and replace flooring [or] paint walls. …They really would prefer just to move in.
5 Tips for selling your condo in 2022’s real estate market
1. Price your condo based on availability and your unit’s special features
With home prices remaining elevated and budgets constrained by inflation as of mid-2022, condos remain an enticing option considering the median sales price for a condo sits at $355,700 — much less than a single-family home.
For many condo buyers, the appeal of owning a condominium is that it has all the advantages of homeownership but comes with perks that reduce the hassles of homeownership. For example, buyers can seek out a condo in an amenity-rich community, such as light maintenance and access to shopping and public transportation.
Also, owning a condo can be more affordable than renting and allows owners to build equity. When someone signs a lease, the renter is subjected to regular rent increases. However, condo owners have a fixed-rate loan where monthly payments stay the same, regardless of what the rental market does.
For those who want to have the lifestyle that comes from living in a metro area, the price difference between renting and owning could be more significant and worth the trade-off in terms of square footage.
Although these factors can help sell your condo quickly, the trick is nailing down the right listing price.
Be realistic when comparing your unit to other condos in the complex
It’s widely known that real estate agents will run a comparative market analysis (CMA) to help set an asking price. Appraisers also look at comparable units to assess your property’s fair market value.
When you’re selling a condo, the pricing of comparable properties (also called “comps”) can range widely — even when comparing units within the same building or complex. This is because each unit’s layout and view can impact each unit’s value.
You’ll need to work with your agent who will factor in items such as where precisely your unit is located, the view from the unit, yard access, and so on.
Supply and demand also impact your pricing strategy
If inventory in your area is low, “Don’t be afraid to price it based on demand,” Tobias says. As of May 2022, NAR reveals there’s only 2.6 months’ supply of condos — or 132,000 condos are listed for sale nationwide.
You can be sure that you’re pricing your condo reasonably but for top dollar, ask your agent for advice. “Chances are, somebody’s probably willing to pay more because you’re the only condo for sale in that particular community,” reports Tobias.
2. Ensure your condo is move-in ready
“Condos that are completely updated will sell above and beyond something that’s not,” Tobias says, noting that he’s seen condos in the same unit and cluster have about a $25,000 price difference because one has new flooring, trim, appliances, and countertops while the other does not. “A condo buyer does not want to go in and replace flooring [or] paint walls. …They really would prefer just to move in.”
Some of the best, most worthwhile upgrades Tobias recommends:
Note: Carpeting will affect your listing price if most units in your complex have hardwood or laminate flooring.
3. Address COA fees while highlighting amenities
Much like living in a community with a homeowners’ association (HOA), those living in a condominium complex will be governed by a condominium owner’s association (COA) and will have rules to follow and fees to pay. These fees are in exchange for having access to specific amenities.
- Utilities like cable television, electricity, heat, water, sewer, and garbage collection
- Maintenance of parking areas, exercise facilities, elevators, shared spaces, etc.
- Landscaping and snow removal
Highlight the amenities and services the complex offers condo owners when you’re creating a listing description to help appeal to buyers. In addition, mention nearby attractions such as museums, parks, retail areas, etc.
4. Stage your condo to show off its size
Condos come in all sizes, but the standard unit is 1,200 square feet. So when you’re preparing your condo to go on the market, you need to pull out all the stops to show off all the best parts of the condo.
Along with decluttering and depersonalizing your condo, you’ll want to stage it to emphasize its spaciousness. “In a house, I don’t get too caught up in making sure people declutter their closets, or declutter their pantry, or making sure their coat closet isn’t crammed full,” Tobias says. “In a condo, I highly suggest making all the nooks and crannies look as spacious as possible.”
While you can hire a professional home stager to come and work their magic, you can stage your home on your own. Some tips for staging a condo include:
- Hang simple window treatments that allow plenty of natural light in
- Buy more lamps and use LED bulbs for more light
- Adopt a neutral color palette for the walls and flooring
- Choose sleek furniture over big and bulky pieces
- Remove rugs that can make the space feel smaller
5. Don’t forget to mention incentives to buy
Does your condo have things that could be considered an incentive for buyers? For example, some high-end developers in New York City have offered incentives to buyers purchasing newly built condominiums, like paying common charges for two to 10 years. Other complexes might offer one-year memberships to a gym or a gift card to a luxury department store.
Some buyers purchase condos as an investment property, and if your condo allows leasing, you might want to advertise the potential for renting out the unit. If you live in an FHA-approved condominium project, you could mention that it’s eligible for federal aid, which is sure to appeal to first-time buyers.
Interested buyers can find FHA-approved condos via the HUD.gov website. They’ll then need to apply through an FHA-approved lender. The lender will work with the buyer and the condo complex to file paperwork regarding the requirements.
Hiring a top agent is the most important tip for selling a condo
Of all the tips for selling a condo listed here, the most important tip we can give you is to work with a top agent specializing in condo sales. An agent specializing in selling condos in your area will know the market inside and out. They can guide you throughout the entire process, from what upgrades you should focus on to your marketing strategy. They’ll also help you price your condo to get top dollar in a competitive market.
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