Selling a condo can be very different from selling a home. The good news is that it’s often a faster process to sell a condo vs. selling a home. New homebuyers often look for condos as a first step toward homeownership, and condo buyers appreciate the lower cost and lower maintenance compared to single-family homes.
Still, there are some common mistakes sellers can easily avoid as well as some tips for a smoother selling process. If you’re getting ready to sell your condo, this article can help.
First, research your HOA laws.
Condos are almost always part of a homeowners association. This means there will be certain covenants, conditions, and restrictions (CC&Rs) that control the selling process, such as steps a seller needs to complete before selling, payment of outstanding HOA fees, or dictations about who can buy your property.
Also, homeowners associations typically have the right of first refusal, which means they may have a contractual right to buy the property before the general public can place bids.
Get a formal appraisal for your condo.
When you’re getting ready to sell a condo, it’s important to get a current appraisal. Just because a condo in your community sold for a certain price does not mean this is a reflection of its current worth.
Although it is easier to evaluate the price of homes this way, condos have multiple factors that influence the price from unit to unit. Here are some things to consider that might increase your listing price compared to a similar unit in the area:
- Number of bedrooms
- Square footage
- Age of the unit and/or appliances
- Floor number (the higher, the better)
When determining the potential listing price for your condo, seek advice from a seasoned realtor. Make sure to partner with a realtor who has plenty of experience selling condos, since it’s very different from selling other types of properties.
Determine the best time of year to list your condo for sale.
Unlike houses, condos rarely have seasonal market value. Houses often sell best during the spring and summer, but when it comes to condos, you might want to consider vacation trends in your area. Ultimately, a local real estate agent will have the best information on the ideal time to list your condo for sale in your area. Just remember, there’s no need to rush! The best time to sell a condo is when you are ready.
Decide whether to remodel before you list your condo for sale.
When selling any type of property, you want to make sure everything is looking its best. Obvious steps like deep cleaning and fresh paint are essential while updating flooring and lighting might be the next step. Additionally, any small repairs or refinishing might increase your listing price. If it’s a seller’s market, you might be able to leave these repairs to the buyer.
However, some buyers might use outstanding repairs to negotiate a lower price. Furthermore, condos usually appear very similar to other units in the development, so you might consider some ways to make your property more eye-catching such as a welcoming entryway or custom staging.
Consider renting vs. selling your condo.
Depending on your financial goals, renting your condo might be a smart path to increase your cash flow and continue to build equity. If you don’t need the equity right away, then check with your HOA to find out rules and regulations they may have about renting.
However, there are a handful of fees that might affect your ability to rent at a profit, such as insurance fees, HOA fees, and property taxes, so make sure to consider these while calculating your condo’s potential rent income. In addition, becoming a landlord is an ongoing responsibility that might require significant time, energy, and resources to manage.
Finally, decide how to invest your equity after you sell a condo.
Once you’ve decided to sell your condo, many homebuyers decide to take that equity and purchase another property. Whether you decide to invest in rental property, a single-family home, a fixer-upper, or a vacation home, we can help.
Contact a local real estate agent who has experience selling condos and check with your HOA about any rules or restrictions that might be in place. Contacting a local mortgage broker is another wise decision when it comes to selling a condo.
When it comes to your equity, your mortgage, or if you’re thinking about buying another property, I’d love to help answer your questions.
Give me a call directly at (408) 610-8011 or schedule a call to get an early start on your next purchase. We work with families, entrepreneurs, business professionals and homebuyers across the San Francisco Bay Area, Los Angeles, Seattle, and throughout California, Oregon and Colorado. Our goal is to save you money and help you reach financial freedom. Connect today to get started.