Why is selling a condo different than selling a house?
Listing a property is a delicate dance. From the initial marketing to the final price negotiations, everything needs to be tailored to the type of home being sold. However, this process can look very different when selling a condo versus selling a house.
SELLING A CONDO DIFFERENT THAN SELLING A HOUSE REASON #1 – THE HOMEOWNERS ASSOCIATION (HOA)
As condo owners know very well, almost all condos come with some type of HOA, or homeowners association.
The HOA generally handles common areas like swimming pools, the exterior of the building, and landscaping. Sometimes, the HOA is also responsible for holding social events throughout the year.
An HOA cannot operate or pay necessary expenses without charging residents a monthly fee. Also, most HOAs have rules that need to be followed.
When selling a condo, potential buyers will balance the costs of each HOA with the benefits.
SELLING A CONDO DIFFERENT THAN SELLING A HOUSE REASON #2 – REAL ESTATE INVESTORS
When selling a condo, it’s reasonable to expect a larger number of investors to consider purchasing the property than might consider selling a single family home. After all, renting out condos is a big business.
As a result, selling a condo could mean a faster closing, a cash offer, or even competing bids if the condo is on prime property.
SELLING A CONDO DIFFERENT THAN SELLING A HOUSE REASON #3 – THE TYPE OF BUYER
Different types of buyers look at a condo versus a home. For starters, condos are generally smaller, don’t have yards, have all landscaping handled professionally, and frequently come with amenities like a swimming pool or fitness center.
While a good majority of potential buyers with children would love a swimming pool with zero maintenance, they aren’t willing to make the trade for a smaller space. This means that when selling a condo, potential buyers will generally be single adults, newly married couples, or retired professionals looking to downgrade to an easier property.
SELLING A CONDO DIFFERENT THAN SELLING A HOUSE REASON #4 – LOCATION, LOCATION, LOCATION
Every real estate agent knows that one factor, above all others, is most important when selling a property: location. Being close to town versus far away from traffic, near downtown excitement versus in a quiet neighborhood, or near shopping centers versus out in rural suburbs, are all reasons that may come into play regarding a property’s value and desirability.
Generally speaking, condos tend to be closer to urban areas, shopping, and entertainment. This also means that their price per square foot is frequently higher. As a result, owners looking to sell their condo should carefully consult with their real estate agent about the best way to market their property, and what a fair listing price may be.