While condos and single-family homes may have a lot of similarities, there are fundamental differences that you must account for when selling each type of property. Selling a condo VS selling a single family home can be very different! Failing to adjust your sales strategy based on the property type will increase the difficulty of your sale – something you obviously want to avoid.
The following information will give you some ideas on what to focus on when you are selling a condo or a single-family home. Your Realtor will be able to go into greater detail based on your individual property, but the better informed you are, the more you can help with the process.
Below you will see some of the best tips for selling a condo VS selling a home.
Selling A Condo – Things To Remember
1. Buyers look for affordability, convenience, and location.
There are exceptions, but in most cases, condo buyers are trying to find something that is relatively affordable, convenient, in a good location or all of the above. Many times condos are a cheaper alternative to a single-family home, making them ideal for first-time buyers. Even if a condo is high-end, though, it still offers certain conveniences that you can’t get a full-size home.
The grounds are maintained by the homeowners association (HOA), and the smaller footprint of the condos means it may be closer to things in the area that people want to be near – like shopping, entertainment, etc. Depending on where you are selling, the most important aspect about your condo may be the zip code it is in. Keep in mind before ultimately making a decision buyers will analyze the pros and cons of both condos and homes. It’s important to understand these facts and features to understand how your Realtor should craft the marketing towards a particular buyer.
Know why buyers will be looking at your condo before you start advertising it. You want to be able to tailor your offering to the kind of customer you will be dealing with. For example, if you are selling 55 and over housing, you should be marketing the features that a senior of retirement age would find desirable.
2. The HOA is part of the deal.
The quality of your HOA is a significant factor in how desirable your condo is to buyers. If the HOA fails to keep the grounds tidy, is always running out of money or is consistently unpleasant to deal with, the buyer only has to ask your neighbors to learn these facts. If the buyer is going to need a loan to purchase the condo, then the lender will need to verify that the HOA meets certain criteria, like the financial records of the HOA, the percentage of owner-occupied units and if any lawsuits are pending. If there are too many issues with the HOA, then the lender may deny the loan.
Remember the purpose of a homeowners association is to ensure the neighborhood runs smoothly. Unfortunately, that does not always happen as a condo association is only as good as all the people involved.
3. HOA fees can vary considerably.
The cost of your HOA fees may seem reasonable to you, but they may come as a shock – good or bad – to prospective buyers. Some HOAs charge a hefty fee each month, enough to almost double the cost of a mortgage, while others are much more reasonable.
If your HOA fees are not too high, it should be easy to sell to buyers, but if they are high, you need to have a good explanation as to why they are so high when you talk to buyers.
Make sure you have a look at the best tips for selling a condominium which will offer up some timeless advice to sell your condo in the shortest amount of time for the most money possible.
Selling A Single-Family Home – Things To Remember
1. Buyers are often looking for space, privacy, and turn-key.
While there tends to be a lot more variety in what single-family home buyers are in the market for, there are some common goals many buyers share. No one goes to buy a condo expecting a certain amount of separation from the neighbors, but plenty of single-family home buyers do.
Many of these buyers are also looking for a room to expand in the home, like extra bedrooms for children they have or that they plan on having. They may be searching for a home with a particular sized back yard, or a garage.
Selling something for a good price requires knowing why buyers will want it. You need to clarify what your home has to offer and stress the strengths of your property to potential buyers. One of the things many smart Realtors do is provide a list of improvements made to your home. A big selling feature of any property is major updates and enhancements that have been made.
2. Your HOA is necessary but less likely to be a deal breaker.
While HOAs can certainly be annoying when you own a single-family home, the organization managing your community is less likely to get in the way of a home purchase if a buyer wants your property. Certain buyers do not want to live in an HOA if they can help it, and who will be uncomfortable with an association that is too controlling. However, the HOA is not responsible for the main structure of the home, so a lender is unlikely to deny a loan based on the HOA.
3. You are responsible for curb appeal.
When you are selling a single-family home, you cannot rely on the HOA to make sure you have great curb appeal. You will need to ensure that the exterior of your home looks great and draws buyers in. Landscaping, lawn care and such will all need to looking in tip-top shape if you want to get potential customers to park and walk through your door to see what you have to offer. The curb appeal of your home is right at the top of the list improvements that will raise your home’s value.
4. The condition is vital.
It doesn’t matter if you are selling a home or a condo – the condition it essential! There are generational differences in today’s buyers. Now more than ever buyers want homes that are turn-key with very little work to be done. With today’s fast paced society a large percentage of buyers don’t have the time or inclination repairs and improvements. Given this, sellers need to understand the most important things to repair before selling a home. Taking the time to get your home in order before it hits the market, can make a big difference. When it comes down to brass tacks, buyers will make sacrifices to move into a home that does not look like a time or money dump.
One tremendous tip is knowing how to get rid of any wallpaper when selling a home. It dates a house, and most buyers don’t want it. Even if you think you have great taste in wallpaper, a buyer is unlikely to share that same belief. Instead, remove the wallpaper and paint these rooms a light neutral color. Remember selling a home is about appealing to the masses not what you like.
5. Not all renovations are money makers; some will lose you money.
Single-family homeowners are often sold the idea by television and contractors that renovations are the key to a better selling price, but this is not always the case. While you may be motivated to pour money into sprucing up your home for buyers, be careful to do your research before you spend thousands of dollars on something that may not add enough value to your home to be worthwhile.
Believe it or not, there are so called improvements that could lower the value of your home! Don’t make the mistake of thinking that all improvements add significant value to your home. That is not the case!
Talk to your agent about what, if any, renovations you need to do to your home before your sale. The last thing you want is to spend a lot of money on an additional renovation, or one where you lose money in the long-term. Bad renovations can happen whether you are selling a home or a condo.
Final Thoughts and Advice
Whether you are selling a condo or a home, it makes sense to have a top producing real estate agent in your corner. The vast majority of the time it does not cost any additional money to hire the best local Realtor possible. Of course, understanding how to pick a real estate agent is essential. Never choose a Realtor based on the opinion of value for your home.
A real estate agent should always be chosen based on their skills. Some of the worst real estate agents inflate values just to get a sellers business. This is the kiss of death. Homes that are overpriced don’t ever sell for top dollar. They languish on the market, and by the time you reduce your price, it’s too late. You have already become victim to a bad pricing mistake!
It is prudent to always interview multiple real estate agents and to listen carefully to any creative real estate marketing to be used in selling your home. Then Choose an Exceptional Realtor from Realty Direct NY because they will go out of their way to make sure their marketing is outstanding.