Pricing is one of the critical stages during the process of getting a property sold. After all, tagging a wrong amount can cause negative impressions from homebuyers which in turn can lead to a more disastrous result. Needless to say, it should be done in a careful manner so that both the seller and buyer can get the most out of the transaction.
How To Price Your Condo For Sale
Pricing a condo is quite different from how it is done on a regular family home. The former has distinctive characteristics that make it completely varied from the latter. Hence, here are six helpful tips on setting condominium prices.
- Consider association fees. It is all about shared ownership and responsibility in a condo environment. While the homeowner owns the unit, he shares common areas such as the lobby, the parking lot and the building complex with the rest of the unit owners. Management-wise, the homeowners association takes care of everything – upkeeps of the grounds and amenities, repairs and maintenance including the payout for the employees such as the security guards for example. Therefore, each owner is required to pay certain fees covering those shared expenses. When setting prices, do consider this factor. See how much you are being charged and find out the full scope and coverage so you’ll know if it will be attractive to your prospective homebuyers.
- Assess your own place. Just like how the condition and age of a regular home affects pricing, so does in a condominium setting. Has there been any recent upgrade that can boost its value? Some of the improvements that can help increase its worth and deliver equally high returns include minor kitchen remodeling and bathroom addition. Do make sure that these changes are permissible with the management first and not included in the set of its property restrictions.
- Consider the complex where your condo belongs to. Take into account how old and well-maintained the building is so you’ll know if it is high time to raise the bar. Where is your place situated? Do you have spectacular veranda views or is it limited to busy streets? How attractive are the facilities? Find out the renters versus owners ratio because a relatively high number of renters tend to sell lower.
- Weigh in the market and trends. What are the current market conditions? Ensure that it jives with the amount you’re tagging on your residence for sale.
- Check the local listings in your area. Know your competition to get an idea of the selling prices of other condos.
- Assign a competitive price. Suppose you’re selling a Manila condominium. See to it that the listing price is competitive enough against similar Philippine properties around the vicinity. Then ask for a sale price that is 3 to 5% lower.