How to Sell Your Condo or House in the Current Real Estate Market
December 22, 2007 by Lucas Lechuga
Oh yeah, and in case you missed it....DON'T OVERPRICE YOUR HOME! If you interview three agents and you decide to go with the agent that is willing to list your home at the highest price, then good luck!
“My house is special, it should be worth more… I mean I spent 30k on the floors alone, I got custom lighting, upgraded bathrooms, tear-down ceiling, a slightly better angled bay view, stain-less appliances, glass railings, premium paint, titled in the balcony.. and more…I mean… It’s a lot better then those other condos out there… so why should I price it lower then them?”
Agree….there may be 50 or 100 listings in any particular condo but what if you did add all those extras awesome floors, window treatments and coverings, recessed lighting etc.. all these are coming decorator ready so if someone comes in a makes its an decoratively outstanding why should they price their’s as the lowest when the 2nd lowest is a plain decorator ready w/ nothing. Seems the impression these days is the cheapest unit of all similiar units is the #1 target but never asks the question what is actually fixed up or has been upgraded in the higher priced units.
Seriously upgrades on a unit can run 20 – 100k so should be reflected in the price and not be used against them and say well the other same unit on the higher floor is cheaper (but has no upgrades)
My upper end clients always rip everything out and redo it anyway.
I find that what they pay a premium for is higher floor and better view.
RA, hate to tell you but I’m pretty certain Juan was being slightly sarcastic. The sad reality of the situation is that a higher condo will demand a higher price, so when it’s priced lower, it just means it’s likely a better bargain. For as much money as you put into your condo, there is the harsh reality that the buyer probably doesn’t care. Just b/c you like how it looks doesn’t mean I will. So what if you have nice wooden floors…that doesn’t mean I won’t want to tear it out and make it polished concrete. That’s the problems with upgrades…you ALMOST never get the amount you put into building them. I say almost b/c there are definitely exceptions, but I think your cards would have to fall in line just right ie: housing prices increasing and a really desirable upgrade. The reality of the situation is that I can always upgrade the inside of my condo into decor of my dreams, but it is much harder to move my condo up 10 stories when the adjacent lot builds an equally tall building and blocks the sliver of view I had left.
Also something that is painfully obvious but often leads to irrational decisions is what I would call “neighbor envy”. So and so sold their place 6 months ago for this much, well my place is nicer so I should be able to sell it for more. *slap slap* WAKE UP! Your neighbor was either smart or lucky, but quite honestly it doesn’t matter. Just b/c Joe was able to sell Citibank stock a couple days before the subprime mortgage realities became painfully obvious doesn’t mean I want to hold on to my stock and wait for a better price. Quite honestly, there are a few realities in the current economy, especially in the Miami market right now.
1. The market has changed over the last 6 months. If somebody sold a place that was similar to yours 6 months ago for a certain price, there is a good chance that yours is now worth less. If you’ve listed yours for a certain price over the last few months and are confused why it hasn’t sold, wake up, you probably have it overpriced in a saturated market.
2. Price does sell. Loans are harder than ever to get, and jumbo loans are even harder. If you really think somebody is going to get a jumbo loan for your condo, you better have a damn nice place.
3. For as much as you are attached to your condo and think it’s perfect, there are probably 30k+ condos around Miami that are going to be completed over the next few years that will be equally as inviting.
4. This equation doesn’t work, bottom 5 in median family income in the US and yet one of the 10 most expensive cities to live in. Quite honestly, unless you really think the thousands of thousands of condos in Miami are all going to be sold to either forigners or as second homes at these prices, people around here are going to be in for a rude awakening.
Amen, Andrew.
Andrew nailed it.
Yeah, I think Juan was being a bit sarcastic as well. Besides the video never said anything about being comparatively the lowest priced. It just said not to overprice your home. Don’t let emotional ties to the property create an obstacle in pricing it accurately.
Well said Andrew!
Even in hot markets, home improvements do not result in higher prices, so you can imagine what your30K of improvements is worth in this market…zero, ziltch, nada! Historically, the only improvement on a home that returned more than 100% of the investment was the addition of a new bathroom. Not a likely scenario in a condo. Andrew is spot on, historic prices of even 6 months ago are meaningless.
Great clip!