Pricing Your Condo to Sell
Setting the price of your condo is not an easy task and if you get it wrong, it can cost you, in either money or a delayed sale.
If you set the price too low, the chances are it will be snapped up quickly, but you may lose some potential profit. There is one exception to this, in a seller's market you may deliberately set the list price below the market price. The idea here is to get multiple buyers interested in your property and thus receive several offers. This results in a bidding war, which can achieve a greater price than if you had set the list price at or above the market value. Of course, this is a very risky marketing method and the decision to do this should not be taken lightly.
If you list your condo above market price, it might sit on the market without selling. Of course, you can lower the price at a later date, but you miss the initial marketing surge and may be interpreted by buyers that you are desperate to sell, or that there is something wrong with your property. This could result in buyers making low ball offers.
Your personal circumstances may also affect the condo listing price. If you have another property ready to move into and don't want to carry 2 mortgages, you will want to price your condo more aggressively than if you have lots of time.
Current market conditions also contribute to setting your list price. In a seller's market, you may want to set a high asking price and see what happens. In a buyers market, you will need to set the listing price at a more competitive level.