Thinking of selling your condo?

 

Whether you live in the condo or own it as an investment property, if you’re ready to sell  it’s likely time to talk to a qualified real estate agent in your area.  Unlike a single home, selling a condo by yourself can even be more difficult.    When hiring an agent/broker, remember you as the seller, are paying the fee for both selling your home and the person buying the condo, if. So when you evaluate hiring a professional you should expect the agent/broker to offer you a marketing strategy and lay out what they will do for you.  Hiring a friend or reference from someone else may not always be in your best interest.

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Part of the strategy your agent will be considering based on several criteria, including time of year, features of your condo unit, the condition of your unit  and that of the building, as well as your specific needs as the seller.  The agent should be able to offer a customized marketing plan for your condo and present it for your evaluation. Here are some important topics to discuss with your real estate agent if you want to sell your home:

 

Best Time of Year to Sell Your Condo

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When you look at the greater Edmonds area the agent/broker can fill in on the specifics of our area to determine the best time to put your home on the market than whether you’re selling a condo or a house. While the conventional wisdom is usually spring, this belief simply doesn’t ring true in every all the time. The real estate agent may suggest a distinct timing strategy.

 

Open House Strategy and How to Declutter

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A condo that shows well will sell faster and bring a higher price. In Edmonds where we live, quite a few buyers are first time condo lookers over 50, however with the expansion of Amazon in Seattle and other companies we see younger individuals in the market.  Downtown Seattle, we that younger market exploding.  

 

Small cosmetic touch-ups can make a big difference. Buyers often suspect that more serious problems may exist if they notice the need for minor repairs. If you want to sell your home, it’s important to make sure your condo is clean and free of personal clutter. Clear sinks and counters of dishes and toiletries. Neatly stack office supplies and organize storage areas. Replace dim light bulbs and clean windows. Even though your garden area may be commonly owned, do your best to create curb appeal by cleaning front steps and porches, and clearing lawns of toys or equipment.

 

Features to Accentuate

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One of the best features to accentuate when selling a condo is the lifestyle of ease that comes with condominium ownership. Many buyers are looking for the hassle-free living experience that they can’t find with a single-family house. Another important attribute of any condo is the amenities of the association, which can include a hot tub, fitness center, owner’s lounge, covered parking and even concierge services, I do not know of any concierge services in Edmonds, but it would be a selling point. If you’re considering selling your condo, take the time to walk through it methodically with your real estate agent. Together you can point out which features of the actual condo unit should be accentuated. Does your unit have a view? Perhaps the location of your condominium is unique and desirable. Your real estate agent can help accentuate these features in sales and marketing materials.  

 

Desired Price and Bottom Line Price

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When setting the home price for your condo, it’s important to identify your desired price and your bottom line price. By assessing recent condo sale and listing statistics in your area, your real estate agent and a licensed appraiser can estimate your house value and recommend an appropriate target price range.  I have seen $100,000 difference within one condo property based on size, view and how it was updated.  If you will take the time to go see some other condo in the area you can get a comparative idea, also how long they are on the market.

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You need to listen to the agent when it comes to setting your initial asking price, coming up with pie in the sky pricing when the market will not support it can mean your property will just stay on the market and you will see interest fall off quickly.  You need to also think about the absolute lowest home price you would comfortably accept. One advantage of selling a condo is that by assessing the prices of other units in your association that have recently sold or are currently listed, your real estate agent and the appraiser can determine a very accurate house value, again, be sure to be realistic in your comparison as to view, size and especially how well updated the unit is.  If someone puts in $50,000 in upgrading the unit prior to sale it would be unrealistic to compare units of equal size and view.

 

Disclosures

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Once you have accepted an offer, or prior if you like, a resale certificate document for your unit must be provided by the owner to the purchaser before they can sell their condominium unit. Any unit owner who wishes to sell his or her unit needs to be aware of the resale certificate requirements.  It is very important you seek professional advice, not only with an agent, but it's our recommendation you seek legal advice.  To understand, we have outlined the requirements of Washington State.

 

The certificate must inform a purchaser of, among other things, the financial status of the association.  This will include the budget and financial aspects of the condo association, to include: any dues still owed by the current owner; their amounts of assessments, dues, and fees that must be paid by owners within the community; copies of the community’s governing documents; and information about any reserve studies or the lack of reserve study, and the number of renters. Other items are included such as immediately know repair exceeding five percent of the budget and anticipated special assessments.  

It is just as important that the association’s board of directors / officers to familiarize themselves with and be prepared to comply with the statutory requirements.  In the end it is a board officer or their appointed representative that needs to sign the re-sale form.  It is recommended, it is kept to a board officer so you know what is going on and kept in the loop.

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The information contained in the certificate must be accurate, based on the information contained in the books and records of the association. This is one reason why it is essential for associations to keep detailed financial records.  What is required to keep your association's books in compliance are extensive, as they should be, and you can view that detail. If the association is discussing or planning significant repairs or maintenance, that information should also be disclosed to the purchaser.

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Despite the fact that the law requires a unit owner to provide the resale certificate to their buyer, the certificate must be signed by an officer or agent of the association. Once a unit owner requests the certificate from the association, it must be provided within 10 days. (The ten days start the day after the request and each day thereafter is counted until the 10th day. If the 10th day falls on a weekend or holiday (this includes State and Federal Holidays) then it need to be delivered the next business day.)

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It is important to note that once the resale certificate has been provided, the legal rights of the former and new owner are affected. For instance, the purchaser’s liability for unpaid assessments or fees against the unit can be limited. Also, the purchaser may void the sale until the certificate has been provided, and for up to 5 days after that, or until conveyance of the unit.

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The resale certificate is just one of the requirements of a unit owner to any potential purchasers. Many other laws apply to both sellers and purchasers of condo units. You may might want, as we have recommended, consult with an experienced attorney to ensure compliance with all legal requirements.

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Washington State condominiums:

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The resale certificate must contain certain information, which is set forth in detail in RCW 64.34.425, part of the Washington Condominium Act.  This section of the Condo Act applies to both Old Act (Horizontal Property Regimes Act, RCW 64.32) and new act (Condominium Act, RCW 64.34) condos. Remember, as explained in the governing document section, that several items of passed legislation are in the New Act, but affects the Old Act also, but you will only find the language in the New Act.