There are a number of factors that can affect the resale value of condos and unfortunately, not all of these are under the property owner’s control. These factors pertain to both the unit interior and exterior as well as the surrounding neighborhood. Following are several things to be cognizant of whether shopping around for a new condo for sale in downtown San Diego or preparing to list one on the market.
Location is always the most critical factor to consider in a housing search given that it will ultimately determine how happy buyers are in their new units. More importantly, location is the single unit feature that buyers themselves don’t have the power to change. However, the dynamics of locations can and do change and thus, the ideal for every investor is to nab a nice unit at a reasonable cost that will one day be a part of an up-and-coming neighborhood with a high property demand. As communities gain features that increase their appeal, such as greater access to major avenues of transportation and a more diverse selection of popular local businesses, neighborhood property values rise. Conversely, when an area experiences high crime rates and is filled with floundering businesses, condos and other housing options start to lose value.
2. Unattractive Common Areas
How well a building is maintained overall will impact both the future marketability of a unit and its resale value. Buying a condo gives you full ownership of your own chosen unit and joint ownership of all other building and property features. Buyers are paying for far more than just the unit itself, and savvy investors will carefully consider the condition and upkeep of all communal spaces before committing to real estate in downtown San Diego. Substandard property managers and noticeable signs of neglect could keep your investment from generating the sizable returns you expect.
3. The Ability to Remain on Par with New Market Standards
Even if a condo unit is impeccably well maintained throughout the years, it may not get the needed improvements for keeping it on par with other comparable condos in the area. Outdated features and amenities can keep you from collecting a reasonable price for your unit. It is important to note, however, that upgrades can always be made as a form of sweat equity, whereas changes in property locations and location dynamics lie outside of investor control. An outdated unit in a prime location will invariably fetch more than will an otherwise comparable and updated unit in a less desirable area.
4. Changes in Views
Another factor that condo owners can’t directly control is the way in which future developments in other areas impact their window views. You may purchase a condo in a prime location that has breathtaking views of the bay or skyline, only to have a major commercial property go up that obstructs this view entirely. There are even rare occasions in which the removal of large natural or commercial structures creates an impressive and unexpected view that adds considerable value.
5. Standard, Static Features
Certain standard, static features also play a role in determining whether or not condos will be quick to sell at reasonable prices. For instance, some studies have shown that smaller units take a lot longer to offload and generate lesser profits than do units that measure 750 square feet or larger. Condos that have patios or balconies are statistically more likely to sell fast and generate greater returns than are units that do not have these features. It pays to know which basic physical features are currently ranking as most important to buyers in your area.
Thinking of putting your property on the market? Let us help. We use our expert knowledge of the area to market condos and lofts for sale in downtown San Diego and attract the right buyers. Learn more or schedule an appointment by calling (619) 649-0368 today!