Whether selling or buying a condominium property, the most difficult question is often: what is it worth? Setting an asking price or deciding how much you're willing to pay for the suite you like involves both factual and subjective considerations. Arriving at the answers is part science, yet largely an art.
Let's look first at selling. You know what you paid for your home all those years ago, and you know the approximate percentage that the market has appreciated since then. You know that your tax assessment is largely inaccurate because the city is always chasing the market, which has fluctuated dramatically in recent years. The condo-specialist Realtor you retain will prepare a comparative market analysis ("CMA") of recent sales in your building and in your neighbourhood and suggest a value range. You can also get the big picture from the Calgary Real Estate Board's web site, where city-wide and neighbourhood sales statistics are posted: www.CREB.com. You can also use this web site's MLS search engine to scan listings in your neighbourhood.
While all this will indicate the approximate value for your condo home, there may be more competition on the market right now than last year or visa versa. You may also have made improvements that other suites didn't offer; or you may have neglected to do maintenance and would rather not do that work before moving. Finally, you need to stir in your own urgency or lack of urgency for the sale. Price higher and a sale will take longer, or perhaps not come at all. Price lower and you're guaranteeing that you'll receive less, but you'll likely be dealing with an offer quickly and be able to relocate soon.
Sellers also need to bear in mind the inconvenience of having their property listed for sale. Keeping a home tidy and without many personal photos is enough of a burden, but add to that the number of times your Realtor will alert you to a dinner-time showing for which you should not be home. Many sellers who thought they'd be okay with the disruption sing a different tune after 50 or 100 viewings. If you have 50 or 100 viewings without an offer, by the way, you're likely priced too high.
Buyers considering the purchase of your suite face mirror-image questions. If the buyers have seen several properties that meet their needs they're going to drive a harder bargain than if this is the only one that works for them. Those shopping for a condo suite or townhouse will also be either motivated by urgency or have all the time in the world, depending on their situation. For some, Mom's basement or the rental suite would be just fine for more months or years to come, while other buyers sold a place and have a transferable-mortgage deadline looming or have temporarily "locked in" a good interest rate when those are about to rise.
I find that buyers have an advantage over sellers in arriving at the value of properties because they're out in the marketplace actually looking at dozens of comparable suites, while sellers arrive at their value conclusions without having toured competing homes. In all cases, though, the final decision for sellers as to what amount to ask, what to finally accept, or for buyers what to offer or finally agree to pay, are those of the client, not of the Realtor assisting them. The best Realtors explain to their clients the options they have in various real estate situations and detail the possible consequences of those options.
For sellers, as I mentioned above, an example will be that a possible consequence of listing at a higher price is that the seller will net more money, but another possible consequence of choosing that option is that many disruptive viewings could yield no sale at all.
For buyers an example would be that offering a seller much less than the asking price could obtain a bargain, but another possible consequence will be that the seller will refuse the offer and also take a harder line in further negotiations, or just refuse further negotiation with that prospective buyer.
Options and their possible consequences are, in fact, the stock in trade for Realtors and their clients. How much to ask for properties or what to offer to buy them are complex decisions based in part on facts and finally on emotions and perceptions of value. The raw data and informed advice can be supplied by the condo-specialist Realtor. The decisions are yours, made with your circumstances and your emotions taken into account.
Calgary Condominium Directory
