How Long Should a Condo Be On The Market?

Condos are popular with first-time homebuyers as well as those who want to downsize or require less maintenance. Condominiums can be complicated to sell due to the fact that they come with fees and ownership rules. It can take several months to sell a condo. This is due to the location and demand.

Supply and Demand, and Prices

The average selling time of condominiums depends partly on the supply and demand factors. Condominiums spend between 200 and 250 days unsold on the Chicago market. Some Chicago condominiums have remained unsold for more than 2,000 days. Condominiums under $450,000 in California’s highly-demand Los Angeles County spend about 84 days on the market while condos over $450,000 take about 100 days to sell.

Reduce Selling Time

While it may take a while to sell your condo there are some marketing strategies that can help reduce the selling time. One is to search in your area for similar properties and take note of their sale prices. Smart condo owners will get an appraisal before listing their condominiums for sale. You can also market your condo by creating a website and offering concessions such as closing costs paid to the buyer.

Mortgage Factors

Fannie Mae, Freddie Mac, and other secondary mortgage lenders in the United States purchase most American mortgages. The Federal Housing Administration (FHA), and the Department of Veterans Affairs, (VA) provide insurance or guarantees for mortgages. Fannie, Freddie, and VA require that condo communities be at least 50% owner-occupied in order for their borrowers the ability to purchase condos there. This means that if you have many rental units in your condo community, it could be difficult to find qualified buyers.

Associations for Homeowners

When it comes time to sell a condo, homeowners associations in condominium communities (HOAs), can either be helpful or harmful. Some HOAs have strict rules regarding how homeowners market their homes for sale. This includes not allowing yard signs that say “for sale”. Prospective condo buyers might need to contact the HOA of their condo community to obtain permission to buy a unit. However, it is worth reaching out to the condo association and its HOA regarding your condo sale in order to generate leads.

This post was written by Dayana Susterman Dotoli. Dayana is the head real estate agent for the Dayana has assisted over 150 individuals with buying, selling, and leasing at Tiffany House. The Tiffany House Residences is a 12 story tower,  offers 129 residences, including 1, 2 and 3-bedroom condominiums and townhomes, with exclusive, resort-style amenities and views of the Intracoastal Waterway and the Atlantic Ocean.

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