The market has been very strong for condos in the city of New Orleans so far in 2013. The market is good as it has been since 2007 when things were going really well. One of the main differences is the number of second homers who are interested in all areas of the city. This coincides with people paying high rents and want to take advantage of the low rates currently around 3.5%.
When you have very few units for sale in all categories you see the prices rising. The prices are above the same time as last year. However it has to be within reason when you price your condo or else it will sit on the market missing many buyers that would otherwise be viewing it. When I see something overpriced I tell my clients to wait for the price to drop. Buyers are much more educated with all the information on the Internet. They know right off its too expensive…..
The agent should be able to give the seller a price range that they will likely get factoring in the past years and the up market. With fewer properties you will get the condo more showings. The agent may not know the numbers or the seller is just being unrealistic. It could be both. Some agents push the number to just get the listing so ask to see the track record of their listings.
The Condo Becomes Stale on the Market
Many sellers just want too much and are not motivated til the condo gets harder to sell. They miss too many buyers when they are listed 10% above the market. Its much eaier to see in condos as the comparisons start with comparing sales within the building and the chosing like complexes. In the end the appraiser will do the same thing. Lets just call it being too greedy….
I tend to take a different approach and go much closer to the price we will end up getting. If I think the condo is worth $205,ooo the we can list at 209,000 as fewer condos are priced in the category. My last couple of listings prices and sale prices were much closer….255k-250 sales price, 249k-245 sales price, 209k-sales price 205k, 189k sales price 185k , 279k and sales price of 275k and so on. No reductions were needed and all the units were shown a lot. Purchasers are going to give you a lower bid but it is much easier to strike a bargain in this market…
Telling your client what they are going to get as a sales price makes the process go smoother and makes the agent review the figures and fully explain the market to his or her client. The majority of agents that are top of there game do this…
Keep the Gap between the selling price and sale price closer.
You get the condo sold Faster and for a Better Price…
The condo seels faster and at a better price because you not miss the season are a group of buyers that would be your buyers. People will look but will not take out the check book and as it gets stale people will want an even better deal….