Townhomes and Condos – They can be Easier to Sell Right Now
With the dramatic increase in inventory in recent years, the number of townhomes and condos for sale has risen dramatically. Where once there may have only been 1-2 units for sale in a development, there are now likely 1-2 other units (or more) with the exact same floor plan. Given that builders typically do several developments in the same or neighboring cities, there can be a large amount of competition within just a couple miles.
While everyone would agree that it is a boon for buyers, almost all of those people would also say it is a detriment to the seller. While the competition is high, that also means that it should be much easier to determine at what price a seller’s townhouse or condo will sell for, given its current condition, view/location, and updates.
In this market sellers that try to argue that their’s is worth more than the one next door because of XYZ will struggle but those that look at the competition and the comparable solds and price accordingly will find that the sales process isn’t as bad as they thought. Buyers can choose the house in the best condition AND with the best price. If you’ve got that, you’re home free.
Posted by Aaron Dickinson - Edina Realty on 02-26-2007 at 03:02 pm
Posted in General, Info for Buyers, Info for Sellers
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2 Comments »
Hi Aaron! It’s particularly difficult for a buyer who may have purchased a town home just a couple of years ago in the beginning phases of a developement, and find themselves wanting to sell at the end phase of a development. I’ve seen this over and over. The homeowner tries to sell a 2-3 year old town home, while the builder is selling a brand new town home, same floor plan, same amenities, same price. The homeowner simply HAS to take a loss of he/she has to sell. I tell my clients to NOT buy into a new development unless they plan to be there for a LONG time! Your friendly Edina Realtor, Lisa Dunn
That’s a good point Lisa. Actually, I would argue that single family homes are the same way. With the current market, the builder has deeper pockets than most sellers so consequently the seller can get stuck with a house that cannot afford to sell.
In this more historically normal market, I’m urging all my clients to consider a 3-5 year time horizon in respect to their purchasing decisions.