For the last several years, real estate insiders have been claiming that this year is the year the market returns to normal. It appears that they are finally correct since inventory is low and sale prices have increased for SFH. It seems every day a new listing appears only to get snapped up under contract before the weekend’s schedule Open House. So this would be a perfect time to put your condo on the market, right?
Not so fast. While the numbers for SFH are improving (I don’t have them in front of me, go read Gary Lucido if you want charts, graphs and math), it’s not the case for condos.
There were just too many condos built and/or converted during the boom which means that inventory is still high and many are also going through the Short Sale/Foreclosure process. This means that as soon as you put your place on the market you are competing with all your neighbors who overspent during the boom and are stuck with underwater property.
That isn’t stopping some from trying though.
This 2/1 condo came on the market a couple weeks ago for $225K. It does have parking but why would you buy it when you can get this 3/2 condo for $25K more?
Keep in mind these are also asking prices so if you use the 10% off Ask Price that the Realty Cartel is comfortable with, you could end up with an extra bed and bathroom for the same price!
Or if you don’t want to blow your budget, why not get this 2 bed, 2 bath for $149K?
The bottom line is if you want to sell your condo this year, you need to set the price as low as possible. Instead of putting money into the place to improve it, use that money at the closing table to reconcile what you owe the bank and what you get offer-wise.
If instead you want to recoup as much money as you spent on your place, well then as the Friend’s Theme song goes…this isn’t your day| your week | your month and certainly not your year!
Like Cubs fans you will have to wait until next year for sales data to justify any type of price increase in the ball park of what you are looking for.
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