An investment analyst in Miami is keen to sell the one-bedroom condo he bought in March 2020 right after the pandemic hit. At the time, he was single and giddy about leaving his dreary New Jersey neighborhood for remote work in Florida and a more relaxed lifestyle.
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But much has changed since then. His New Jersey firm now opposes remote work and insists he report to its central office every business day. Also, the man has married, and his wife is pregnant with their first child. So, he’s decided to put his condo up for sale, though he’s nervous about his chances for strong results.
Robert Reffkin, the CEO of Compass Real Estate, a national realty brokerage, doesn’t know the analyst in this true story. But he says some properties in Florida and Texas, including older condos, are now harder to sell in the post-pandemic period. That’s because values in those states rose more during the pandemic than elsewhere in the country, and they’re now slipping somewhat as more inventory becomes available.
Danielle Hale, senior economic research analyst for Realtor.com, the home listing company, notes that although sellers are still in a strong position in many regions of the country, nationwide the median listing price is currently 2.2% lower than it was 12 months ago.
Still, real estate pros caution against pessimism for condo sellers. One major factor involves demographics. Baby boomers, the oldest of whom are now in their late 70s, are becoming ever more interested in the sort of one-level living most condo-apartments offer.
“For owners who wish to unload an apartment, the aging of America is on your side,” says Mark Nash, a longtime real estate broker and author of “1001 Tips for Buying and Selling a Home.”
Here are a few pointers for condo sellers:
-- Seek to make your condo more marketable.
Mary McCall, a real estate broker in Tampa for Re/Max, says it’s critical for the owners of older condos in her area to face reality when attempting to sell. They must acknowledge that, because Florida is now more prone to severe hurricanes, property insurance costs there have risen dramatically.
While owners can do little about natural disasters or structural problems with their buildings -- such as the absence of an elevator in a multistory structure -- they can do a lot to improve the appearance of their condo.
“By updating worn linoleum countertops to quartz or granite, you can make a world of difference in salability. Also, new contemporary light fixtures are affordable improvements,” says McCall, a past president of the Residential Real Estate Council (crs.com).
-- Price your property accurately from the beginning.
It’s easy for condo owners to fall into the trap of trying to test the market with the price their unit could have achieved during the pandemic when property was in shorter supply.
“You need to look at condo sales that have occurred within the last six months and the more recent, the better. Prices fluctuate ... depending on supply and demand,” McCall says.
She points out that it’s much better to hit the right price from the beginning of your listing rather than to take price cuts later, after your condo has languished on the market for multiple days.
“Testing the market with a high price is often a failed strategy because your listing can easily become stale,” she says.
Is the condo you’re planning to sell located in an area with a lot of new construction? If so, you’ll need to take this into account when setting your price.
“If you try to push your price in an overbuilt area, your unit will just sit there. People just won’t even look at your condo no matter how great,” Nash says.
-- Request a “broker’s open” for agents throughout your area.
Of course, not all condos are tough to sell. Every region has neighborhoods that are consistently popular, says Dorcas Helfant, former president of the National Association of Realtors (nar.realtor).
“There are always niche condo markets with special cachet and almost no turnover,” Helfant says. These include complexes in popular metropolitan centers, along with those that feature extraordinary views or beach access.
But even if your condo is located in a building where demand is steady across time, you’ll want to ensure that it comes to the attention of serious buyers. That way you increase your odds of getting a strong bid or even multiple offers.
To compete with rival units in your complex, Helfant recommends you ask your listing agent to stage one or more “broker’s opens” at your condo. These are open houses to which real estate agents throughout your general area are invited. They typically feature food, entertainment or both.
“No matter what kind of real estate you’re trying to sell, you need buyer traffic. If your condo looks great and gets exposed to many agents, they’ll spread the word and bring their clients by,” Nash says.
As he notes, broker’s opens can be especially valuable to sellers in condo buildings where the supply of unsold units exceeds buyer demand.
“Most buyers trust their agents. If the agent likes a condo and knows it shows well ... he’s more likely to recommend a showing to his clients. You want such serious buyers coming through, not just the kind of curiosity seekers who often visit public open houses,” Nash says.
(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)