Thinking of putting your condo on the market in the warmer months? You’re not the only one. Spring and summer are usually considered the best time to sell a property. According to real estate experts, home sellers make the highest profits and sell the fastest in the first two weeks of May, followed by June and July.
But not many homeowners know that putting a condo out for sale in Brampton is quite different from selling a single-family home. Not sure what we are talking about? Scroll down below!
Factors That Set Condo Selling Apart From Single-Family Home Selling
A single-family home is different from a condo in many aspects. And these differences extend to the selling process.
So, if you own a condo apartment and are planning to put it out on the market soon, it’s vital that you understand the differences between selling a condo vs a single-family home.
FACTOR #1 - Target Buyers
Condos and single-family homes attract different kinds of buyers. The potential buyers of a single-family home look for more space, privacy, and also a higher degree of control over their property.
On the other hand, the target buyers of condos for sale in Brampton usually have these on their wish list -
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Near good amenities and public transit options
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In a central or desirable location
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A low-maintenance lifestyle
While selling a condo, you must know who your target buyer is. Understanding your target buyers can enable you to craft better marketing messages that resonate with the buyers’ needs and desires.
FACTOR #2 - Move-In Condition
Condos are usually listed in the market as turnkey properties meaning they are ready for immediate occupancy. This is because buyers of a condo expect to move into the property immediately and want to avoid renovations.
But single-family homes are seen as more malleable. Homebuyers are more willing to put in some sweat equity in a property by renovating it later on to their taste and preferences.
FACTOR #3 - Staging While Selling
Staging condos for sale Brampton is easier and quicker as compared to staging a single-family home. This is because condos are typically smaller than houses meaning less space to arrange furniture, declutter, and style.
Also, many condos have modern fixtures and finishes that are already appealing to a broader range of buyers. So, stagers don’t need to bring in many decor items to enhance the space since the condo itself provides an up-to-date backdrop.
FACTOR #4 - Financing
Getting financing to buy a condo is also a tad bit more difficult as compared to financing a single-family home. In Canada, government-backed mortgage programs like the ones offered by CMHC have stricter requirements for condos. The same goes for the loans provided by major banks, credit unions, and private mortgage lenders.
The reason behind this is that lenders see condos for sale in Brampton as slightly riskier than single-family homes. Factors such as shared ownership and reliance on a condo association for maintenance influence their decision. Hence, since getting a mortgage for a condo can be trickier, the pool of potential buyers for your condo may be smaller as compared to a single-family home.
FACTOR #5 - Renovation Limitations
You may be certainly aware of the renovation restrictions that a condo apartment has. Condo homeowners’s associations (HOAs) usually impose rules about what changes owners can make to their units. This can limit the appeal of the property to homebuyers who may want to personalise their living space. On the other hand, owners of single-family homes have much more freedom to renovate and make changes in their property.
FACTOR #6 - Home Inspections
Home inspections are less common in condos for sale in Brampton as compared to single-family homes. In a condo, the owner isn’t responsible for the building exterior, roof, foundation, or other common areas. The maintenance of these areas is typically the responsibility of the homeowners association (HOA). Most HOAs provide potential buyers with maintenance records for the building’s common areas.
So, as long as the appliances and fixtures inside the unit for sale are functioning well, the buyer won’t go ahead with a property inspection. However, some condo buyers do get this inspection process done for peace of mind.
FACTOR #7 - HOA Involvement and Restrictions
The sale of a condo involves the HOA which can become a great hassle for a condo seller.
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Prospective buyers would want to review the HOA’s rules, regulations, and financial health. So, high HOA fees, restrictive policies, or any other red flag issues can drive away a lot of buyers.
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Some HOAs of condos for sale in Brampton require an approval process for new homeowners in the building. The HOA may have requirements for the buyer’s financial stability, or background checks. If a buyer doesn’t meet these criteria, the HOA could deny approval, delaying the sale.
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Sometimes, an HOA may decide to levy a special assessment for unexpected repairs or maintenance projects. If this happens while a condo is on the market, it can be a turnoff for potential buyers and complicate the sale.
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HOAs may have limitations on the type of “For Sale” signs you can display or restrict the times and frequency of open houses.
FACTOR #8 - Pricing Strategy
The comparable properties of a condo for sale in Brampton are similar units located within the same building. Since the possibility of more unique features in the other condo units is less, it becomes easier for a condo seller to set an asking price.
On the other hand, the comps of a single-family home are all recently sold units in the neighbourhood. So, a number of factors in all these properties play a role in the accurate pricing of the single-family home in question such as -
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Size
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Location
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Lot Size
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Overall condition of the property
Increase the Odds of Selling Your Condo With a Realtor
Selling a condo has both advantages and disadvantages over a single-family home. Homeowners don’t have much hassle with staging and inspections while selling condos for sale in Brampton. However, HOA involvement and financing can create a hurdle in selling the property successfully.
This is why it’s essential for a condo seller to partner with an expert Realtor. Real estate experts have the expertise and resources to effectively market your condo property to potential buyers and guide you through the selling process. So, team up with a local Realtor today and get set to selling your condo for top dollars in the shortest time.