Common wisdom suggests that condominium units in downtown San Diego would sell very quickly throughout 2018 because of seller market conditions that have been experienced since late 2015, but reports from real estate analytics firm CoreLogic tell a different story. The negotiating power is still in the hands of sellers, but the median number of days on the market has been increasing along with a slowdown in sales since August. The California range of sales closing between 40 and 77 days is expected to climb as fewer units become available and prospective buyers start looking at other markets. San Diego condo owners who need to sell their units faster than the market average may want to take the following steps for a quick sale.
1. Retain a Niche Real Estate Agent
This isn’t the time to consider a “for sale by owner” transaction. Depending on your sales price tolerance, your real estate agent options should be narrowed down to those who focus on condos and those who cater to flippers. When you interview potential listing agents, make sure to ask about their experience moving real estate in downtown San Diegoand the type of buyers they can market to. Agents who have a black book of real estate investors who don’t engage in bidding wars would be ideal in this case.
2. Sweeten the Deal for the Agent
Low commission rates for listing agents have been very popular since 2010, but there’s always room for negotiation. Since the goal is to get to the closing table as soon as reasonably possible, you’ll want to hear the projections of the listing agent at a high sales price you may have in mind. Based on this information, you can set a sliding scale of commission rates that adjust according to days on market and potential sales price.
3. Draft the California Residential Purchase Agreement Carefully
Since you cannot afford to wait on buyers to complete their obligations, narrow their time frames and include more clauses that are acceptable to those making an offer. There will be various clauses you won’t be able to get around. For example, a home inspection may be a hard requirement for a mortgage lender, but you can try to resist excessive addendum inclusion by lowering the price if the buyer seems motivated.
4. Prepare HOA Documentation in Advance
It’s always better to work with agents who specialize in condo properties. Prospective buyers may want to share homeowners association documents with their agents, mortgage loan officers, and real estate attorneys who may end up slowing down the process. For this reason, it helps to accept bids from buyers who have mortgage preapproval letters from their banks, particularly those that seem to be locked into a lower loan-to-value deal, because the banks will review the HOA docs faster for the purpose of getting to the closing table quickly.
If you have a downtown San Diego condo for sale and you need to sell it quickly, it only makes sense to work with real estate agents who know the downtown San Diego condo market best. The experienced agents at 92101 Urban Living will guide you through the process of selling your property for the highest price. Call one of our knowledgeable professionals today at 619-649-0368 to get started.