With the upcoming riser project everyone is asking: Should I sell my condo? Can I sell my condo? Should I buy a condo? Is it better to rent my condo?
The old expression that goes something like “it is always darkest before the storm” kind of applies here. We will base our answers on input from appraisers, market experience, and broker experience in like situations.
If you want to sell, wait. The period after the assessment is initially contemplated will be the toughest market to transact. When no one knows what the final estimate will be, we work without a reasonable bottom line for buyers to start their negotiations.
Immediately after, barring an unexpectedly high estimate for the project, prices should stabilize as buyers and sellers negotiate a point between market less assessment and full market for pricing.
As the project progresses and gets closer to completion, prices will approach full market value. Once the project is complete, sellers will generally realize full market value and overall higher prices because they are offering a higher quality home.
For buyers, the period of highest opportunity is the “dark before the storm” prior to the start of the project. During this period of lower than market prices, the buyer is generally able to purchase at a discount as they assume the risk of unknowns in assessments.
One can equate this with the recent recession when prices swooned marketwide in an unsure economic environment; it seemed like prices would never come back to normal for a few years and thousands gave up their properties across the country. As we know now, investors were able to purchase properties at a great discount and the market came back stronger than ever.
Should you consider renting your condo instead of selling it until the initial storm is over? Just as every condo in Brooks is unique, so is everyone’s situation. The rental market for the price range that Brooks condos occupy has been strong during the past couple months. We usually anticipate a slower summer market that heats back up in mid-August. We would be happy to help you bring your condo to market if this is a path you choose.