The basics of selling a condo function much like selling a home: you list it, price it thoughtfully and negotiate based on the offers you receive. However, the condo’s location and HOA (Homeowner’s Association) will be two important factors that buyers take into consideration that don’t apply to single-family homes.
We’ll get to condo pricing in a moment. A buyer’s lender will often conduct a review of the condo’s HOA to look at how many cash reserves are in place for repairs, the ratio of renters to owners, and to see if there are any pending litigations or other issues that could affect the sale.
Finding “the best” time to sell your condo depends largely on the neighborhood and current market trends. A trustworthy real estate agent who has sold condos and knows the local market will be able to give you good advice on when to sell. While the rule of thumb is that the spring is always a good time to list a property, it also depends on how the housing market is doing, location and the condition of the property you want to sell.
It might be tempting to sell your home without an agent, especially since sellers pay commission fees to both buyer and seller agents at closing. The FSBO (For Sale By Owner) method of selling might appear to save money, but working with an agent can actually help you price your home better and negotiate a good sale price.
Realtors bring years of experience to the market. They’ll give advice about how to stage your home, how to price it wisely, and how to write counter-offers to sellers. While a successful FSBO can save you money, it is fairly rare and often takes much longer to close.
Deciding whether or not to make repairs to your home before selling depends on your property condition and on how you want to sell it. Making large repairs might increase your condo’s value, but it can put a dent in your finances and there’s no guarantee that you’ll recoup the cost.
On the other hand, sellers are often obligated to make repairs based on village codes and findings from the buyer’s inspection. Ask your realtor to help you anticipate what kinds of repairs might need to be made, and their experience selling condos in the area will help you make a smart, cost-effective decision.
Costs for selling a condo can be broken down into two categories: costs to prepare it to sell, and the commission and fees associated with the sale itself. Expect to put some money into cleaning your home and making simple upgrades like new paint or landscaping. Staging your home to sell will cost you as well. Once you’ve accepted an offer, you will pay between 5% and 6% of the sale price as commission to the buyer and seller agents. It’s also a good idea to check in with your mortgage lender to see what fees you might have to pay when ending your mortgage on the property.
It’s hard to price a condo at a rate that will sell quickly but at a beneficial price to you. Condo pricing will be based on the unit’s square footage, its neighborhood location, and other factors like its location in the building (e.g., does it have a view of Lake Michigan or of a nearby parking lot?). Your agent will use the MLS and their experience to price your condo at an accurate rate so that it sells at a good price without sitting too long on the market.
One of the keys to selling your home is making it look attractive to potential buyers during showings. Simple repairs like patching cracks and removing mildew and mold can go a long way in making your condo look more attractive (and a deep clean is strongly recommended as well).
Consult your realtor to see if staging your condo might help it sell. This can be costly, especially if you have to move out furniture and belongings that are already there, but it might help depending on your condo’s location and the local market.
The length of time that it takes to sell a condo depends on its location and the demand in the market. On average, Chicago condos sit on the market for 40-70 days, but don’t count on this number when planning out next steps. The average closing period in Chicago is 45 days, but this can vary as well.
When an offer is made on your home, you have the choice of accepting, rejecting, or providing a counteroffer. Once you and the buyer have settled on a sale price, you will go under contract and the attorney review period will begin. The buyer will schedule their home inspection and your attorney will review your contract. The first few days after going under contract will be busy, so be prepared to schedule inspections and communicate with your agent and attorney to get the ball rolling on all necessary items.
Sometimes a buyer’s ability to purchase your condo is based on the sale of their property. If the buyer’s previous home doesn’t sell in time, the contract on your condo is terminated. A sale contingency helps the buyer but is risky to the seller, since there’s no guarantee even after going under contract that the buyer’s home will sell in time. A settlement or closing contingency means that the buyer is already under contract and a closing date has been tentatively scheduled, so it's slightly less risky to the seller.
After the buyer’s home inspection, their lender will send a third-party professional to conduct an appraisal. The appraisal helps the lenders know that the loan amount they are giving to the buyer is representative of the actual value of the home. One of the reasons it’s important to price your home correctly is that if the appraisal comes in below the sale price, the lender won’t approve the buyer’s loan and the buyer will have to back out.
When you sell a condo that has a mortgage, the buyer’s financing will pay off your lender. After you have paid closing costs, the remaining equity in the home goes to you. Assuming that your condo hasn’t dropped in value, you will make a profit based on market values and equity that you’ve built up over time with mortgage payments.
With over a decade of experience helping clients buy and sell homes in Chicago, we understand the complications that come with the selling process. Feel free to reach out to our team with any questions you have, or check out our Advanced Search feature for local listings and start the search for your next home today.
MOTIVATED SELLER! Corner 3bd/4ba home with magnificent views of N, W & lake on high floor with spacious 50ft living/dining room area for living and entertaining. Enjoy go...
The data relating to real estate for sale on this website comes in part from the Broker Reciprocity program of Midwest Real Estate Data LLC. Real Estate listings held by brokerage firms other than our company are marked with the MRED Broker Reciprocity logo or the Broker Reciprocity thumbnail logo (the MRED logo) and detailed information about them includes the names of the listing brokers. Some properties which appear for sale on this website may subsequently have sold and may no longer be available. The accuracy of all information, regardless of source, including but not limited to square footages and lot sizes, is deemed reliable but not guaranteed and should be personally verified through personal inspection by and/or with the appropriate professionals. The information being provided is for consumers personal, non-commercial use and may not be used for any purpose other than to identify prospective properties consumers may be interested in purchasing.
Copyright 2021 MRED LLC. All rights reserved.
Based on information submitted to the MRED as of . All data is obtained from various sources and has not been, and will not be, verified by broker or MRED. MRED supplied Open House information is subject to change without notice. All information should be independently reviewed and verified for accuracy. Properties may or may not be listed by the office/agent presenting the information.
NOTICE: Many homes contain recording devices, and buyers should be aware they may be recorded during a showing.
The Digital Millennium Copyright Act of 1998, 17 U.S.C. § 512 (the DMCA) provides recourse for copyright owners who believe that material appearing on the Internet infringes their rights under U.S. copyright law. If you believe in good faith that any content or material made available in connection with our website or services infringes your copyright, you (or your agent) may send us a notice requesting that the content or material be removed, or access to it blocked. Notices must be sent in writing by email to DMCAnotice@theMLSGRID.com.
The DMCA requires that your notice of alleged copyright infringement include the following information: (1) description of the copyrighted work that is the subject of claimed infringement; (2) description of the alleged infringing content and information sufficient to permit us to locate the content; (3) contact information for you, including your address, telephone number and email address; (4) a statement by you that you have a good faith belief that the content in the manner complained of is not authorized by the copyright owner, or its agent, or by the operation of any law; (5) a statement by you, signed under penalty of perjury, that the information in the notification is accurate and that you have the authority to enforce the copyrights that are claimed to be infringed; and (6) a physical or electronic signature of the copyright owner or a person authorized to act on the copyright owner’s behalf. Failure to include all of the above information may result in the delay of the processing of your complaint.