When you enter into a pre-construction condo purchase agreement, you contractually commit to purchasing a condo before or during its construction, but you would not move in until it is complete or sufficiently complete to do so. Many pre-construction condo buyers are aware that a lot can happen between the time they purchase and the time they take possession.
However, if you decide to buy a pre-construction condo and then sell it shortly after, you are making the right decision. You must carefully plan the selling process to ensure that it goes as smoothly as possible. Many factors influence how well you sell the condo. First and foremost, the price you put on the condo.
The current market value is the most important factor. You can learn about the market value by researching recent sales of similar condos in the area. Other factors to consider include the condition of the location where the condo is being built and the amenities provided by the complex. Finally, you want to offer a reasonable price that is close to market value while also taking into account the other factors.
To get you started, here are three steps on how to prepare for the selling process.
Assignment sale
If you are thinking about trying to sell the condo before taking possession, you are most likely embarking on what is known as an assignment. The buyer transfers to another buyer their rights and obligations outlined in the contract to acquire a pre-construction condominium or suite. This means selling your condo as an assignment.
The new buyer will then take your place under the contract, including acquiring all of the rights and obligations outlined in the developer’s original agreement. As a result, by agreeing to the assignment, the new buyer is purchasing the agreement of the original purchaser (you) to complete the final sale with the developer. The assignment is required because you do not own the condo until it is built, you have closed on the purchase, and ownership has been formally transferred to your name.
Make sure you gather a lot of information for the assignment process, so you know how to proceed further on. You can click here to find the essential information and facts on how to sell a pre-construction condo, and what requirements you need to complete for a successful sale in your area.
Hire a realtor who is well-versed in selling pre-construction condos
If you are looking to sell a pre-construction condo, it’s always a good idea to work with a real estate agent who is familiar with the market. Working with an agent who is familiar with both pre-construction and resale condos ensures that you will receive all of the information you require to make a decision about your sale.
You should also work with a real estate agent who is knowledgeable and experienced with assignment sale transactions. You can ask them questions to help you better understand your options, weigh the pros and cons, and make an informed decision about whether you want to continue with the sale.
Your agent can also review your existing agreement to see if it contains the necessary terms to allow the sale. If someone does make an offer on your home, you can trust your real estate broker to use the negotiation tactics they’ve been trained and learned to use, ensuring that the buyer comes in with an offer that meets your requirements. Many real estate brokers are also well-established online, with multiple social media platforms through which you can contact them at nearly any time of the week.
Online pre-construction sales
With the internet becoming such an important part of our daily lives, many sellers are focusing on selling their homes online. In such cases, a generic ad on the internet simply does not cut it. A real estate broker can help your ad get noticed not only by suggesting ways to improve its attractiveness but also by informing you of the best price you can get for your home and the best avenues to take to post your home online.
Final thoughts
Buyers who purchase pre-construction condos benefit from lower rates and favorable payment terms. Anyone who buys a unit before it is finished will undoubtedly get more value for their money in the long run. Remember that real estate appreciates over time, so a pre-construction condo unit represents an absolute gain in terms of earning more than what you paid for. This is what you should point out when you decide to make a sale.
