A nurse practitioner in Las Vegas was thrilled to purchase a newly constructed luxury condo in 2018. Among the amenities of her gated complex are tennis courts and a resort-style gym.
But Las Vegas housing didn’t fare well during the pandemic, and properties in many Vegas neighborhoods, including where the nurse lives, have declined in value. Hence, she’s planning to sell before she moves back to Sacramento, where her parents live.
Michael J. Connerly, the author of “How to Win With Real Estate,” says that although condos are generally more affordable than detached houses, most buyers strongly favor traditional properties with yards. And that preference was strengthened during the pandemic.
He says buyers are especially resistant to the purchase of look-alike properties in large condo complexes -- like a number built in Nevada in recent years.
Connerly doesn’t know the nurse in this true story. But he’s not surprised she’s finding it challenging to sell her property in a large complex where many of the units are very similar in terms of size and floor plans.
Are you trying to sell a “look-alike” condo? If so, Connerly says it’s wise to make sure your listing agent differentiates your unit from the others based on its positive attributes.
“Your condo should be more appealing than others if it’s on an upper floor with less noise or a nicer view. Also, highlight the distinction if it has a balcony or is a corner unit, which means it has two outside walls rather than one,” he says.
Condo sellers who face stiff competition must think strategically, as should their listing agents. Here are a few pointers:
-- Ensure that you price with cash-tight buyers in mind.
Those seeking to sell a condo in an area where many new units have been built recently need to be especially careful not to set too high a price, or their property could sit unsold for a lengthy time, says Mark Nash, author of “1001 Tips for Buying & Selling a Home.”
Those planning to sell in a complex where many condos are on the market should do a careful review of what other units, known as “comparables” or “comps,” have sold for during the last three to six months.
“For pricing, it’s foolish to rely on anything but apple-to-apple comparisons. Your goal is to ascertain true market value rather than trying to justify a bloated price,” Nash says.
Suppose, for example, that you’re the owner of a condo that overlooks a car dealership. If so, don’t try to price as if your unit is worth as much as another one in the same complex that overlooks a beautiful garden.
“As I’ve always told sellers, walk in the buyers’ shoes. They’re the ones who ultimately decide what your condo is worth,” Nash says.
-- Heighten awareness of your unit with local real estate pros.
Dorcas Helfant, a real estate broker-owner and former president of the National Association of Realtors, recommends you ask your listing agent to hold one or more brokers’ open houses at your place. These are open houses to which all real estate agents in the area are invited. As a magnet, such events often feature food, entertainment or both.
“The reality is that most serious buyers work with real estate agents. And the agents have a great deal of influence over which properties a client visits. Agents who’ve had the chance to preview a place, and come away impressed, are more likely to take their clients by to see it,” Helfant says.
“Brokers’ opens” can be especially valuable to the seller of a condo in a building with a large number of clonelike units for sale.
“In a building like that, you have to compete for attention,” Helfant says.
-- Add luster to your listing with upgrades.
Connerly says it’s usually worth it to spend a few thousand dollars on presale upgrades if you’re competing with many other sellers with similar units.
“The biggest bang for your buck is always paint, which makes any place look sharp. But there are also some other fairly inexpensive steps that can be especially helpful in a competitive market,” he says.
For example, many condo buyers are impressed with kitchen upgrades, including quartz countertops, which have come down in price in recent years, as well as hardwood cabinets.
“Just replacing your cabinet fronts alone can make an old kitchen look stunning. But to make the room seem larger, avoid dark wood in favor of oak or ash,” Connerly says.
-- Market your condo heavily to young buyers.
“If your condo is located in a moderately priced building in a popular area, it should appeal strongly to young buyers eager to shed their landlord,” Nash says.
Besides the usual print and online advertising materials, Nash recommends that your listing agent develop community “resource lists” with your target audience in mind.
“For instance, young professionals new to your area could value a lengthy list of nearby restaurants, clubs, gyms, movie theaters and grocery stores, along with ratings and reviews,” he says.
-- Stay away from tangible incentives.
During steep downturns in real estate sales, some sellers have offered “tangible incentives,” such as a free large-screen TV or iPad, in hopes of beating other sellers in the same building.
But Connerly cautions that such offers can draw the wrong type of buyers.
“Tangible rewards make you look desperate and therefore usually attract lowballers rather than serious bidders. So it’s better to spend your money on upgrades,” he says.
(To contact Ellen James Martin, email her at ellenjamesmartin@gmail.com.)