Condo Selling 101

Set A Listing Price

When you want to sell a condo in a Buyers' Market, price is very important. You need to price your condo competitively with other similar properties in your area to attract buyer interest. How do you do this? It helps to get a Comparative Market Analysis (CMA).

This report can be prepared by a real estate agent (most times for no fee). The CMA basically shows a cross-section of other condos that are similar to yours in size and are located in the same vicinity as your condo. You can see what other condos have been listed or sold for to get an idea of how you should price your place. Depending on the agent who does your CMA, the length and extensiveness of the analysis may vary. But here's a quick rundown of what you can expect to get ...

A CMA typically includes a short synopsis of properties called "comparables." The data is comprised mainly of street address, list price, market time and property details of the comparables. This information can be used to gauge a proper price range for your own condo, which is - for all intents and purposes - is just like the other comparables.

A CMA can also provide general market statistics for a 6-month period on the area surrounding your condo. This gives a broader view of the local housing market by showing the minimum, maximum and average prices for pending sales, currently for sale, and other listings. Using the CMA summary, an appropriate price range for your condo can be determined. The agent who prepares your report should include a section that states the suggested marketing price for your property and the range within which your condo could justifiably be sold.

In some cases, the agent will not give an expressed price for your listing. You can estimate what it should be by comparing your condo to the "comparables." See where your condo may exceed or fall short of other similar places by looking at: square footage, amenities & upgrades, age of construction, and location. Any or all of these components can affect your listing price.

Here is a simplified example:

Condo A and your condo both have 2 bedrooms, 2 bathrooms and similar square footage.

• Condo A has an upgraded kitchen and is listed for $250,000
• Condo A is on a busy street in your neighborhood

• Your condo also has an upgraded kitchen, but it is on a quiet residential block

So, you could list your condo for more than $250,000 because is has the same kitchen upgrade but a better location.