It's quite apparent that the world and society are in a state of uncertainty. Natural disasters, economic crises, and a global pandemic has affected the financial power of the people. This has certainly affected real estate, which relies heavily on a stable financial market and confidence. So selling your condo in a tough market requires a little extra help.
Buying and selling condos can be a lucrative business, and as long as you have the necessary initial investment you can savour a great return on investment. But, the overabundance of luxury condos being built coincided with the economic crisis, and suddenly selling for a grand profit is no way near as easy as it once was.
Are you looking to sell your condo – or your property? Here we provide our expert tips on how to sell your condo successfully in a tough market.
Consider the timing of your sale
Timing is one of the key factors you need to get right in order to make the best out of a property sale. In order to sell your condo for the highest price, it is crucial that your timing is strategic and market-oriented. It's a traditional stipulation that spring season is the best time to sell. Although this stipulation is valid, it is notable that different markets work under different rules. Therefore, before any action, you should do some research into the state of your local market.
For the most resourceful information, you should consult local real estate agents.
For example, right now a strained financial market due to the coronavirus pandemic has slowed real estate activity down considerably. Though properties are still going into contract, the spring market is certainly not full of momentum as it is typically.
That being said, a real estate expert reporting to Edition.cnn advised, “Don't take your property off the market.” “Now more than ever, people have time to look for homes. Fewer distractions while they are stuck at home. There is a lot of online looking right now.”
Pricing games
Next you should examine the condo prices in your area, so you can value your condo fittingly. For example, the average sale price for condos in Manhattan is currently $1.66 million, whereas in Richmond, Virginia the average condo sells for a much lower price of $261,800.
In Canada it's a similar story, with Buttonwood explaining that in Toronto, the average condo had a 17.3% jump in price in February this year from the same time last year, now standing at $910,290. But in Vancouver, you can still secure a condo for an average price of $584,000.
Check out the current condo sales and average prices, including whether prices are increasing or decreasing, and make sure you are comparing the condos of the equivalent area, dimensions, and condition. Then, put a price that will be just slightly under the most competitive prices on the market.
That way you will attract the buyers' attention. After that, prepare for some bargaining. It is recommendable to have two prices in your head, the desired one and the bottom line one – with the latter being the lowest price you would be willing to sell your condo at. Reality is often disappointing, so you might end up selling your condo for less than a desirable amount, especially in the current market.
Marketing is key
No for the main course, marketing. When selling your condo, don't forget to mention the facilities that come with it, whether that's a pool, fitness center, walking trails or anything else worth stating. Make sure to present your condo in the best fashion. It sounds obvious, but it should be looking and smelling clean and free of particularly personal items or quirky furniture. The buyer always needs to envisage themselves living there – and that requires a blank canvas. Furthermore, if there's anything broken make sure to fix it.
In a tough market, you need to utilize all the resources you have when it comes to marketing. Now is not the time to try and sell your condo on your own through Facebook or your own efforts. Reach out to a professional who already has a pool of prospective buyers, who will be able to market your property on the main property portals, as well as their website and even social media.
They will also be able to show off your property in its best light, thanks to professional photography, detailed descriptions, and even PR through magazines and online publications.
Incentives when selling your condo
Incentives are great when it comes to closing a deal. For example, if you're really wanting to sell, you could offer closing cost help. A lot of buyers struggle to gather enough cash for closing costs after they paid all previous financial obligations. Offering help will make your condo more engaging to potential buyers.
You also may offer to pay condo fees in advance. Buyers are often reluctant to offer because of condo dues they have to pay along with the mortgage. Relieving them from the dues for a year will give your buyers a head start. Don't forget to include appliances. If your condo is furnished with a refrigerator washer or dryer it will sell more quickly, even more so if you throw them in without increasing your initial prize.
Final thoughts
Condos have become a new real estate hot property over the last ten years. However, over saturation of the market has made selling the condos much more complicated. Nowadays, if you want to sell a condo for the best price possible, you need to make sure your offer really stands out against the competition. And in order to do so, you need to examine the local market carefully, get all the help you can, and make an offer your buyers can't refuse.
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