In many ways, listing a condo for sale is similar to listing a house for sale. You must determine an appropriate asking price, prepare the home to go on the market, and then advertise the home to prospective buyers. Digging up relevant home documents such as the ones listed in this post, are helpful when selling a home or a condo. However, there are a few additional items you will also want to research prior to listing a condo for sale.
First, you will want to find out what types of financing can be used to purchase a condo in your complex. Why should you care what types of loans a buyer could use to purchase your condo? Well, not all condo complexes qualify for all types of loans. Let’s imagine you receive an amazing offer on your condo. You accept the offer and begin preparing to move. A few weeks go by and then you are notified that the buyer can no longer purchase your condo because the condo project does not qualify for the loan product the buyer planned on using to purchase your condo. In this scenario, it’s possible they may not be able to qualify for a different type of loan, and you will be back at square one. To make matters work, your home will have been off the market for a few weeks - valuable time you could have used to identify a buyer that is truly qualified to purchase your condo.
You can see how it makes sense to understand what loans buyers can use to purchase your condo. This example sheds light on the greater issue of making sure a buyer is thoroughly vetted to ensure he or she can qualify for the purchase. Whether you are selling a house or a condo it’s important to verify with a buyer’s lender that the buyer is truly qualified and that the property is eligible for their specific loan product. When selling a condo specifically, I would check to see if the condo building qualifies for FHA financing. You can check to see if your condo project is FHA approved on the HUD website. Additionally, I recommend determining if the condo is warrantable. This one is a little trickier; however, this post outlines some of the factors that influence whether a condo is warrantable or not. You should also check with an experienced mortgage professional.
There are a few other things you will want to know about your condo before listing it for sale. Understanding what your HOA fee covers and how much it is monthly will help you better market your condo for sale. You also want to find out how much the resale certificate costs and what the HOA charges for transfer fees. And, you want to find out how long it usually takes the HOA to provide the resale certificate. All of these items are on the sales contract. If you don’t know the answers to these questions, how can you intelligently negotiate an offer you receive? Contact your HOA for detailed information on these items.
Researching all of these pieces before you list your condo for sale ensures a smooth closing. As an experienced listing agent with a plethora of condo sales under my belt, answering all of these questions is part of my listing checklist. If you are interested in selling your Austin area condo, contact me today.
Erika Rae Albert
Sharing my Austin real estate updates, home owner tips, & more.