Condo Offers, How Much?
An experienced agent will tell you, its not what the seller’s are asking that determines your offer. But it is more of what the condo is worth? The seller may not be asking the correct price! So its not how much off that you can get from the asking price. Your offer should be based on the condos value.
If a seller is more than 10% over the correct price the condo will get stale and lose its shopability. They may not know how to figure out the value or may just want to see if it can get more. There are so many variables when pricing a condo. The seller and their agent all these variables may have missed some items. Many times the seller cannot look at the numbers with an open mind, they want more than its worth in many cases.
Sometimes however sellers just want to sell the condo and will put a very good number on the property. In these cases the seller may come of little if the value is there. Sometimes the agent does not know the correct price and advises their client wrong. Both find out the error over time. I have made the pricing error as well. This happens when there are not many comparable numbers available to draw a conclusion.
When valuing a condo here are some steps to take- Its More than just size or square footage. It is important but certainly not the only factor in the pricing?
What are condos in the building selling for? How is this condo any different than the others? How does the condo rank with the competition and the recent sales?
- Is the unit updated? Anything special that was done to the unit. What has been updated, Kitchen and baths? What would it cost to update?
- What floor is it on, first floor units tend to go for less. What is the floorplan?
- What is the view, this is a large factor. How many windows does it have. No one likes a dark condo without light. Do you have value in a balcony or porch? Certainly?
- What are the negatives of this unit? What are the positives? What are the Condo Trends in the area and the building?
- Does the unit have parking, parking can be a big plus in urban areas such as the French Quarter, Warehouse District and uptown New Orleans.
- What are the floors? What type of flooring, carpet is out. Are the appliances new?
- Is the square footage all one one level? This is more valuable than loft space made within the unit.
- Does the unit have high ceilings to give it a bigger look?
Andrew Jackson may not know what the condo is worth! But Eric will! In the end you are going to rank the condos in your order of preference. You are going to look at all the pluses and minuses when figuring out which is your favorite unit. Then we can figure out what the correct price of the unit is. We may be able to get it for less than the numbers say.
The market has been very stable for 3 years so values are also very level for most and up for only the better units. Some sellers may have paid too much and those sellers just take longer to adjust to the correct price.
The sellers motivation is also a key factor. Always a good idea to find this out. In this current buyers market there will be some good deals as some sellers just want to sell. Many remain stubborn but tend to come around as the bills come due, taxes, condo fees and no rent coming in. A 200k condo can easily have a carrying charge of 1500-1700 per month. Waiting 3 months can easily cost a seller $5,000 that will never be seen again.
Many time developers only take the size into consideration. You can get some great deals that add to your resale value. This happens more than you know as its not easy to get the values right. You take a chance in a new building but the value is there if you choose correctly. The listing agent may never let you know.
As an experienced buyers agent I can help you with this. I have always put a lot of emphasis on the resale of the unit. I know what most people want and what the most popular features are. I also know what things they do not like and issues that are harder to overcome. I can rank the unit in terms of the past sales to see where your favorite may rank. Seeing and showing the areas makes this a much easier process.