When you’re selling your condo in Downtown Los Angeles, it’s always a good idea to follow your real estate agent’s advice. Your Realtor(R) will evaluate dozens of other condos to see where yours stacks up on the price list, and he’ll let you know how much a buyer is likely to want to pay for yours.
He won’t just look at any condos – he’ll only look at condos that are similar in size, amenities and location to yours. He’ll be checking on condos that sold within the past few months, condos that the owners pulled from the market because they didn’t sell, and current listings.
Common Pricing Mistakes People Make When Listing a Condo for Sale in DTLA
The bottom line is that your condo is only worth what someone else is willing to pay for it – and in a perfect world, that figure is more than what you owe on it.
But despite Realtors’ best advice, sometimes sellers want to list the home for a different amount. The most common mistakes we see actually occur when:
- Sellers want to base the price based on how much they paid for the condo.
- Sellers try to recoup money for renovations in the sale.
- Sellers believe they can price the property too high and lower it if it doesn’t work out.
Pricing Mistake #1: Sellers want to base the price based on how much they paid for the condo.
Unfortunately, buyers don’t care – at all – about how much you paid for the condo. They don’t care how much you still owe, either.
Pricing Mistake #2: Sellers try to recoup money for renovations in the sale.
When you invest in your condo, you can’t expect to get those costs back on the sale. Let’s say you added all-new granite countertops, had the walls marbleized and bought a brand-new bathroom vanity that’s absolutely gorgeous. You’re still unlikely to recoup all those costs through a sale, so don’t add them into the price.
Pricing Mistake #3: Sellers believe they can price the property too high and lower it if it doesn’t work out.
When you price your home too high, two things happen: Buyers who could ordinarily afford your condo won’t even see it, and buyers who can afford the higher price won’t want it. Eventually, you’ll have to lower the price – but that comes with its own risk, too. (More on that in a minute.)
Here’s how it works. When buyers search for condos online, they know their price range. If your condo is priced at $250,000 but the buyers who can afford it only search for homes $240,000 and under. The buyers who could afford it at the price your Realtor suggested won’t even see it in their searches.
And at the same time, the $250,000-and-up buyers will see your condo listed at that price and compare it to the other $250,000-and-up condos. Yours won’t be as large, have as many amenities, or be located in the same neighborhood or building as others, which will make it look like a bad buy.
Finally, when your condo has been on the market for more than 30 days with no viewings or offers, you’ll decide that you need to lower the price. The problem is that your listing isn’t “fresh” anymore. People who have been looking for more than 30 days won’t see it pop up at the top of their online lists – and people who just started looking will see newer condo listings first. The other problem: Prospective buyers who see “PRICE REDUCED” on your listing will wonder what’s so wrong with your condo that you had to lower the price to get people interested.
Are You Buying a Loft or Condo for Sale in DTLA?
Call us at 213-254-7626 or get in touch with us online to start exploring your options when you want to buy a loft or condo in downtown Los Angeles.
While you’re here, check out our:
- DTLA Arts District lofts for sale
- Historic Core lofts for sale
- DTLA Little Tokyo lofts for sale
- Bunker Hill lofts for sale
- City West lofts for sale
- South Park lofts for sale
- Fashion District lofts for sale
- Financial District lofts for sale