If you are looking for a wise investment, it is crucial to investigate condo vs. townhome resale value before making a big purchase.
Here is everything you need to ensure long-term value of your potential townhome or condo.
Overview of Reselling a Condo
If you are leaning towards a condominium investment, the good news is that these properties typically sell much quickerthan single-family homes, even in a down-market, due to lower costs.
To ensure higher resale values, buyers need to select condo units carefully. It is essential to take into consideration factors such as the resale history of other units in the building, current property values, and the local real estate market.
When condo owners are ready to resell, it is also critical to get up to speed on the condo association’s rules and guidelines as to what can be done with the units. Associations may place limits on who the condo may be sold to, buyer pre-approval and where you place for-sale signs.
Setting your home apart from the other similar surrounding condo units and communities involves highlighting your condo’s assets and neighborhood amenities. Determining a competitive selling point is also crucial to the success of your resale.
Overview of Reselling a Townhome
The process of reselling a townhome closely mirrors that of a condo. However, sellers have found that townhomes tend to have lower resale values.
Not only can it be more challenging to fill a townhome community, but it is often harder to obtain financing for townhomes. This is due to the increased liability of owning both the land and the physical structure.
On the positive side, determining a fair selling price of a townhome is relatively easy because of the many similar properties in the community.
When listing a townhome, it is also critical to highlight the amenities of the community and the HOA dues that the buyer will encounter.
Where you Can Look to Find a Good Investment
Finding a worthwhile investment, whether that involves the purchase of a condo or townhome, involves finding a desirable location and community.
Here are a couple of questions you may want to ponder to determine if you have found an ideal area for the ideal investment:
- Is the property in an area where properties are in demand, such as near a college or university?
- Is the property in an area that is getting less popular or more popular?
- Could a major employer in the area close down and cause rental/purchase demand to decline?
- Could a new condo development be built nearby, requiring expensive improvements to compete?
Now that you are up to speed with condo vs. townhome resale value, it is time to start planning that perfect property investment!