I own a townhouse/condo in Central Oregon. The market here has been really soft. I listed it about 24 months ago, didn't get a single nibble, took it off the market, and have had it leased. Now I am ready to try to sell it again and plan to list it in March. The rental income does not fully cover the mortgage payment plus the HOA dues, so I'm slowly losing money. The Zestimate for it seems way too high ($413K), and the next-door unit is currently on the market for $339K. My unit is an end unit with more windows; the unit for sale is a middle unit, other than that, they are identical. That unit has been on the market for a little more than a month. I intend to list mine for about $330K or maybe even $325K. I just want it GONE. Even if I don't make a dime, I just want it gone. I am considering offering to pre-pay part of the HOA dues for 12 or 18 months. Those dues are pretty high right now because of a project-wide repair. The HOA board decided to raise the dues temporarily rather than impose a huge assessment. Beyond pricing it really low and offering to help with the HOA dues, is there anything else I can do to increase the odds of getting a viable offer? It will be empty, so showing will be easy, and it won't be cluttered up with a tenant's belongings. Any suggestions will be gratefully received. Thanks.
Posted by FOCOMojo
4 Comments
The price sounds smart. The idea of pre-paying part of the HOA dues would probably be attractive. I’d also consider staging the property because people tend to lack imagination. And get great photography that really shows off the extra windows and light. I’d also try to dress up the front a bit. Even if you just put some potted flowers on the steps or something, it makes it look a little more special and memorable when they’re comparing it to the other unit.
What is the cap rate with no mortgage, i.e. (Rent-HOA-property tax) / Hopeful sales price?
Is this a townhouse, or a condo? If a condo, is it warrantable or non warrantable? There have been a lot of changes and if it’s now non warrantable you just lost 99% of financing out there and your buyer pool as well. Check out the Portland condo listings and you won’t believe how cheap the are and not selling.
Nothing shows worse than a dirty and dated townhouse.
Make sure it’s super clean, especially bathrooms, fresh paint to brighten it up. New carpets. And don’t paint over outlets and switches! This is so ugly. In fact put in new outlets, switches and plate covers. It’s not that expensive.